October 24, 2024
By Our Correspondent
Komainu, a prominent cryptocurrency custodian supported by Japan’s Nomura Holdings, is poised to enhance its footprint in Asia’s rapidly developing cryptocurrency landscape.
According to a recent media reports, Komainu is in the process of acquiring Propine Holdings Pte Ltd, a company based in Singapore. This acquisition, which is pending approval from the Monetary Authority of Singapore (MAS), marks Komainu’s inaugural venture into acquisitions and may signal the beginning of further expansions in the future.
A critical element of this acquisition strategy is obtaining a Capital Market Services license in Singapore. Co-CEO Paul Frost-Smith emphasized the significance of this license in a recent discussion, as it will provide Komainu with a solid regulatory framework in Singapore, facilitating the expansion of its services in one of Asia’s most welcoming environments for cryptocurrency.
Singapore’s regulatory landscape has been advantageous for cryptocurrency enterprises, characterized by a clear licensing system and a 0% capital gains tax for individual investors. In response to significant failures such as FTX in 2022, Singapore has enacted stricter regulations to encourage responsible use of blockchain technology while overseeing crypto custody and transfer services.
As the MAS continues to enhance its regulatory framework for the cryptocurrency sector, Komainu is strategically positioned to leverage these changes. Additionally, the company intends to seek a Major Payment Institution license in Singapore, which would allow it to provide extensive payment services to private banks, hedge funds, and asset managers.
Frost-Smith also pointed out that Japan is a crucial market for Komainu’s expansion, given that it is the home market of Nomura. Both Japan and Singapore are leading the way in regulatory advancements for digital assets, establishing themselves as key operational hubs for Komainu. The custodian is witnessing significant demand from financial institutions in Japan, particularly for advisory and collateral management services.
Komainu’s push into Asia comes amid a broader trend of institutional interest in the region’s cryptocurrency market. Regulatory clarity in countries like Singapore, Hong Kong, and Japan has encouraged global players to establish a presence.
Komainu was launched in 2018 as a joint venture between Nomura, crypto security firm Ledger, and CoinShares. It has built a reputation as a reliable custodian for a wide range of clients, including trading platforms, asset management companies, and government agencies.
Last year, Komainu expanded its offerings to the Middle East, securing a full operating license from Dubai’s Virtual Asset Regulatory Authority (VARA). The company is also a licensed custodian with the United Kingdom’s Financial Conduct Authority (FCA).
The Propine’s takeover marks the next chapter in Komainu’s global expansion as it continues to enhance its offerings in key markets across Asia and the Middle East.
Komainu’s expansion into Asia aligns with a growing trend of institutional engagement in the region’s cryptocurrency sector.
The establishment of clear regulatory frameworks in nations such as Singapore, Hong Kong, and Japan has prompted international entities to set up operations there.
Founded in 2018 as a collaboration between Nomura, the cryptocurrency security firm Ledger, and CoinShares, Komainu has earned a reputation as a trustworthy custodian for a diverse clientele, which includes trading platforms, asset management firms, and governmental bodies.
In the previous year, Komainu broadened its services to the Middle East, obtaining a comprehensive operating license from Dubai’s Virtual Asset Regulatory Authority (VARA). Additionally, the company holds a custodian license from the Financial Conduct Authority (FCA) in the United Kingdom. The acquisition of Propine signifies a new phase in Komainu’s global growth strategy as it seeks to further develop its services in critical markets throughout Asia and the Middle East.
