Hong Kong may soon have its first fully licensed cryptocurrency exchange. The country’s regulator, the SFC has granted OSL Digital Securities a license to trade cryptos.
August 22, 2020 | AtoZ Markets – Hong Kong-based digital asset firm OSL Digital Securities announced Friday it had been granted a licence to trade crypto by the region’s markets regulator. The move, however, could see OSL become “the world’s only publicly listed, licensed, insured and Big-4 audited digital asset platform,” according to a statement from the firm.
Fidelity-backed crypto exchange OSL gets Hong Kong license
OSL, which is backed by investment giant Fidelity, said in a statement that the move by Hong Kong’s Securities and Futures Commission (SFC), would allow it to “to operate a brokerage and automated trading service for digital assets, including security tokens (‘STOs’).”
OSL applied for a digital asset license from the SFC last November. It’s now the first company to receive such approval from regulators in Hong Kong, according to Reuters.
“Until now, traditional finance has been observing this asset class with interest, but lack of regulatory clarity has so far discouraged participation,” the CEO of BC Group—the operator of OSL—Hugh Madden said.
“Licensing is a game-changer, because it provides certainty and confidence to investors, unlocking massive participation as it drives the increasing use of our platform by the global institutional investor community.”
Hong Kong’s interest in cryptocurrencies is growing
Hong Kong-based BC Group is a technology and digital asset company that operates OSL. Fidelity, an American multinational financial services corporation, in February, acquired 17 million shares of BC Technology Group. This stake is worth $14.2 million.
That investment—and OSL’s announcement —is indicative of the growing interest from traditional investors in cryptocurrencies. However, investors typically disinterested in currencies like Bitcoin are now becoming more involved as alternative assets become more attractive.
OSL is Asia’s largest digital asset platform. They provide prime brokerage, custody, exchange, and SaaS services for institutional clients and professional investors.
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