Komainu, a cryptocurrency custodian supported by Nomura Holdings, is preparing to acquire Propine Holdings Pte Ltd, a company based in Singapore, pending approval from the Monetary Authority of Singapore (MAS). The acquisition will provide Komainu with a Capital Market Services license in Singapore, which is essential for expanding its operations in the region. This move is part of Komainu’s strategy to strengthen its presence in Asia, where digital asset regulations are well-established in markets like Singapore, Hong Kong, and Japan. Komainu also intends to apply for a Major Payment Institution license in Singapore to offer full payment services. The company has received significant interest from private banks, hedge funds, and asset managers, particularly in Singapore, for its advisory and collateral management services. Komainu views Singapore as a crucial strategic hub in Asia, and the acquisition of Propine will further enhance its capabilities to meet the growing client demand in the region. While the exact amount for the funding round remains undisclosed, Komainu’s co-CEO, Paul Frost-Smith, stated that it would conclude in the coming weeks. Additionally, Japan is considering a possible reduction in crypto tax rates to align them with other financial assets, according to a reform proposal by the Financial Services Agency (FSA). The FSA aims to treat cryptocurrencies as traditional financial assets, making them more accessible for public investment. The use of cryptocurrencies in Japan is expected to grow rapidly, with the number of daily traders projected to increase from 350,000 to approximately 500,000 by the end of this year. This surge would place Japan’s market size between those of Turkey and Indonesia and about two-thirds the size of South Korea’s market. With its high awareness and dynamic landscape, Japan presents exciting possibilities for new technologies and widespread crypto use.
