"Crypto winter pushes Europe unit into the red"…Nomura tightens risk controls on digital assets
Summary
- Nomura Holdings said its European unit swung to a loss due to the downturn in the digital asset (cryptocurrency) market.
- It said it is curbing short-term profit volatility by strengthening management of digital-asset-related positions and risk exposure.
- Nomura shifted to more conservative management, including reducing digital asset holdings, but emphasized it will continue investment to support the cryptocurrency business’s development and growth from a long-term perspective.
Nomura Holdings, a Japanese securities firm, is significantly tightening risk management at its European unit, which has been hit hard by the downturn in the digital asset (cryptocurrency) market.
According to Bloomberg on the 30th (local time), Nomura CFO Hiroyuki Moriuchi said on a quarterly earnings conference call that day, "Our European unit has swung to a loss due to weakness in the digital asset market," adding, "To curb short-term profit volatility, we have strengthened management of digital-asset-related positions and risk exposure."
Nomura said it has shifted to a more conservative stance, including reducing its holdings of digital assets in line with market conditions. It stressed, however, that this is a temporary pause. Moriuchi said, "While reducing short-term risk, we will continue investing to drive the development and growth of our cryptocurrency business over the long term."
Doohyun Hwang
cow5361@bloomingbit.ioKEEP CALM AND HODL🍀
