Hong Kong Crypto Exchange OSL Considering Sale
Hong Kong-based BC Technology Group Ltd. is reportedly exploring the possibility of selling its crypto exchange platform, OSL. OSL is one of the two licensed exchanges in Hong Kong that operate under the city’s digital-asset regulations. BC Technology has reached out to potential buyers, including industry players and investment funds, with a rumored valuation of around HK$1 billion ($128 million) for OSL. The platform offers prime brokerage, exchange, and custody services for the crypto market and provides infrastructure for financial institutions to engage in virtual-asset trading. The sale may involve a partial sale rather than the entire business.
Hong Kong’s Regulatory Framework for Digital Assets
This development takes place as Hong Kong aims to establish itself as a digital asset hub. New regulations introduced in June allow retail investors to trade larger tokens on licensed exchanges. However, demand for cryptocurrencies in Hong Kong has been lackluster due to market turbulence and business failures. The strict regulatory framework in Hong Kong may result in higher operating costs for crypto-related businesses. BC Technology’s interim report shows reduced net losses, but OSL’s trading volume has decreased by almost half.
BC Technology’s Market Performance
BC Technology’s market value has fluctuated, with recent growth pushing it to nearly HK$1.9 billion from a low point in August. However, the company’s shares are still down 80% from their peak during the cryptocurrency boom triggered by the pandemic in June 2021. OSL had withdrawn its application for a digital-asset license in Singapore but is now preparing a revised submission. Some Singapore-based clients are being relocated to the Hong Kong exchange amid this process. HashKey Exchange is currently the only other platform in Hong Kong with a crypto permit.
Hot Take: BC Technology Considers Selling OSL, Hong Kong’s Regulatory Challenges
Hong Kong-based BC Technology Group is reportedly exploring the sale of its crypto exchange platform, OSL. The city’s regulatory framework for digital assets has been stringent, leading to higher operating costs for crypto-related businesses. This has affected the demand for cryptocurrencies in Hong Kong. Despite recent growth, BC Technology’s shares are still down 80% from their peak in June 2021. OSL plays a significant role in BC Technology’s income, but its trading volume has decreased by almost half. The potential sale of OSL may involve a partial sale rather than the entire business. The outcome of these deliberations remains uncertain.
By
By
By
By