Nomura-Backed Komainu Set to Acquire Propine Holdings Pending MAS Approval

Komainu, a cryptocurrency custodian backed by Nomura Holdings, is set to make its first acquisition with the purchase of Singapore-based Propine Holdings Pte Ltd.

The deal is currently awaiting approval from the Monetary Authority of Singapore (MAS), the firm said in a statement released on Tuesday.

Per the announcement, the acquisition of Propine will grant the firm a Capital Market Services license in Singapore, a crucial element for growing its business in the region.

Komainu’s to Expand Presence in Asia

The move is part of a broader plan to strengthen Komainu’s presence in Asia, where regulatory frameworks for digital assets have become increasingly established in markets like Singapore, Hong Kong, and Japan.

Komainu also plans to apply for a Major Payment Institution license in Singapore, enabling it to offer full payment services.

The company has seen rising interest from private banks, hedge funds, and asset managers, particularly in Singapore, for its advisory and collateral management services.

“Singapore is an important strategic hub for Komainu in Asia and Propine will enhance our capabilities in meeting the significant client demand we are experiencing, including for Komainu Connect, our collateral management service, which is already extensively utilised by our investor clients in Hong Kong, Singapore, Malaysia, Thailand and Australia,” Komainu co-Chief Executive Officer Paul Frost-Smith said.

Japan remains a key market for Komainu due to its strong ties with Nomura, and Frost-Smith highlighted that the country will play a pivotal role as the company continues to grow.

While Komainu is gearing up for a funding round, Frost-Smith declined to disclose the expected amount but indicated that it would conclude in the coming weeks.

Japan to Reduce Crypto Tax Rates

Earlier this month, Japan revealed that it is considering a change to its crypto tax code, potentially lowering it to align with other financial assets.

The country’s financial regulator, the Financial Services Agency (FSA), has recently proposed a reform that could lower the tax rate on crypto profits to a flat 20% .

The proposal was outlined in an August 30 request for tax reform, part of a broader review of the fiscal code for the year 2025.

The FSA is advocating for the treatment of cryptocurrencies as traditional financial assets, which would make them more accessible for public investment.

“Cryptocurrency should be treated as a financial asset and an investment target for the public,” the FSA stated in its report.

Japan’s use of crypto is expected to grow rapidly, with the number of people trading crypto daily rising from 350,000 to around 500,000 by the end of this year , according to a Bitget study.

The surge would place Japan’s market size between those of Turkey and Indonesia, and about two-thirds the size of South Korea’s market.

“Japan with its high awareness for crypto is a dynamic and rapidly evolving landscape,” said Gracy Chen, CEO of Bitget.

She added that exciting possibilities and current trends in Japan make it a prime area for new technologies and widespread use.