Sony Group has officially entered the cryptocurrency industry and is set to launch a crypto exchange in Japan by acquiring Amber Japan.
Sony Group, a Japanese company widely known for producing cameras, gadgets, and the popular PlayStation games, has diversified its business by venturing into the crypto industry. Amber Japan exchange has faced severe financial issues due to its partnership with bankrupt crypto exchange FTX and has been rescued through this purchase by Sony.
Sony Acquires Crypto Exchange
Sony has been no stranger to the crypto world, having previously invested in a few startup projects. However, it has now taken a more decisive step by acquiring Amber Japan, the crypto exchange formerly known as DeCurret.
DeCurret, a Japan-based crypto exchange, was sold to the crypto firm Amber Groups after operating for only four years in the country. Following the purchase in 2022, it was renamed as Amber Japan. However, due to regulatory issues, Amber Groups couldn’t operate fully in Japan as a crypto exchange.
Moreover, after FTX’s downfall, the company faced severe bankruptcy. Blockchain blogger Colin Wu stated, “Later, due to the collapse of FTX, Amber Group fell into trouble and was suspected of a complete debt-to-equity transaction with Fenbushj.” To repay customer’s funds lost from the crash, it raised $300 million in December 2022.
After efforts to sustain the establishment proved abortive, Amber Groups placed its Japan subsidiary on sale, drawing the attention of Sony Groups, a company willing to expand its crypto presence.
Sony Group, one of Japan’s most prominent companies valued at over $100 billion, has acquired Amber Japan to begin a new business venture.
Following the announcement on Monday, Sota Watanabe, founder and CEO of Startale Labs, Sony’s blockchain partner, revealed that Startale’s external director “is going to lead exchange at Sony.” He further stated that the company had planned the move for the past year and a half and saw this as the right time to execute its scheme.
Japan’s Crypto Adoption Review
Amidst the Japanese Yen devaluation, a few companies have switched to cryptocurrency to safeguard their funds from inflation. Japan-based Metaplanet has announced a strategic shift to bitcoin (BTC) as its primary reserve asset. In addition, the company has recently invested ¥200 Million ($1.25 million) in acquiring BTC with plans to buy more. Currently, it holds about 117.7 bitcoins acquired at an average price of ¥10,193,536 ($65.4 million) per bitcoin.
Moreover, Ripple has partnered with HashKey DX, a Tokyo-based division of the HashKey Group, to introduce XRP Ledger-based enterprise solutions into the Japanese financial.
