OSL Group, a Hong Kong cryptocurrency exchange, has announced a US$15 million deal to acquire a 90% stake in Evergreen Crest, which operates a cryptocurrency exchange in Indonesia.

This agreement is intended to enhance OSL’s presence in Southeast Asia.

In a filing with the Hong Kong Stock Exchange, OSL said that the acquisition will allow it to access Indonesia’s cryptocurrency market.

The company aims to use regulatory licenses for spot and derivatives trading through Evergreen Crest’s subsidiaries.

This acquisition aligns with OSL’s global expansion strategy.

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🔗 Source: The Block

🧠 Food for thought

1️⃣ Indonesia’s crypto regulatory journey signals a dramatic policy evolution

OSL’s acquisition comes amid Indonesia’s remarkable transition from crypto prohibition to strategic embrace over just five years.

In 2019, Bank Indonesia explicitly warned against cryptocurrency trading and refused to recognize virtual currencies as valid payment instruments 1.

By mid-2018, regulators had already begun shifting position, with the Indonesian Futures Exchange Supervisory Board (BAPPEBTI) recognizing cryptocurrencies as commodities and allowing futures trading 2.

This evolution is culminating with regulatory oversight transitioning to Indonesia’s Financial Services Authority (OJK) in January 2025, aimed at strengthening consumer protection while fostering innovation 3.

The trajectory demonstrates Indonesia’s pragmatic adaptation to cryptocurrency’s growing popularity despite initial resistance, creating a more structured environment that’s attracting international players like OSL.

2️⃣ Indonesia’s meteoric rise in crypto adoption creates regional leadership

Indonesia has emerged as Southeast Asia’s crypto powerhouse, experiencing extraordinary growth that explains OSL’s strategic interest.

The country now ranks third globally in crypto adoption, with user numbers surging from 9.9 million in 2021 to 28.52 million in 2024—nearly tripling in just three years 3.

Indonesia received approximately $157.1 billion in cryptocurrency value between July 2023 and June 2024, making it the leading nation in the entire Central & Southern Asia and Oceania region 4.

This represents significant year-over-year growth in crypto activity, primarily driven by interest in decentralized finance (DeFi) and trading activities 3.

OSL’s acquisition gives them immediate access to one of the world’s fastest-growing crypto markets, where momentum appears to be accelerating rather than slowing.

3️⃣ Demographic and financial inclusion factors create unique market potential

Indonesia offers distinctive market conditions that make it especially fertile ground for crypto adoption and explains why OSL highlighted the country’s “key attributes” in their announcement.

Approximately 48% of Indonesia’s adult population remains unbanked, creating a significant opportunity for cryptocurrency services to provide alternative financial access 5.

The country’s tech-savvy youth population, with smartphone penetration exceeding 90%, has embraced digital financial solutions, particularly decentralized finance applications 5.

Indonesia’s status as the world’s largest Muslim-majority nation is driving innovation in Sharia-compliant blockchain solutions, with initiatives like the HAQQ Network gaining regulatory approval 5.

These demographic advantages align perfectly with OSL’s stated ambition to expand into real-world assets and payment finance in Indonesia, potentially serving previously underserved markets.

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