Hong Kong’s financial markets regulator, the Securities and Futures Commission (SFC), agreed in principle to issue a license to the cryptocurrency firm OSL Digital Securities.
OSL is Asia’s largest digital asset platform that provides prime brokerage, exchange, custody, and SaaS services for institutional clients and professional investors. Operated by BC Group, it aims to become “the world’s only publicly listed, licensed, insured and Big-4 audited digital asset platform.”
Notably, OSL experienced outstanding growth performance from 2019 and during the first half of 2020. BC Group recently announced that the crypto exchange had experienced a revenue increase of 47% year-on-year, with trading volume of $28 billion in the first six months of 2020.
BC Group CEO Hugh Madden said,
Securing approval-in-principle for a virtual asset trading platform license in Hong Kong, inclusive of security tokens, underscores our commitment to comprehensively addressing the demands of institutional investors.
Last November 2019, the Hong Kong Securities and Future Commission announced the new regulation for crypto exchanges. The announcement was made by Chief Executive of the Hong Kong SFC Ashley Alder in his speech at the Hong Kong FinTech Week 2019.
Financial regulators worldwide have been debating for some time exactly how they should regulate cryptocurrency or virtual assets firms. Following Alder’s speech, the SFC also published a new regulatory approach to virtual asset trading platforms on its website.
The new standards set by the SFC for opt-in regulation addresses regulatory concerns regarding custody, anti-money laundering (AML), know-your-client (KYC) requirements and counter-financing of terrorism (CFT) and others for trading crypto.
In February, Fidelity, an American multinational financial services corporation, acquired 17 million shares of BC Group, a stake worth of $14.2 million. This shows the growing interest of traditional investors towards cryptocurrencies.