Based on current BC Technology discussions with potential buyers, the company may end up selling all or a portion of its OSL exchange.
BC Technology Group, the parent company and owner of Hong Kong crypto exchange OSL, wants to sell the exchange. according to bloomberg Article BC expects to complete the OSL sale at a valuation of HK$1 billion ($128 million), citing people familiar with the matter.
People familiar with the matter, speaking on condition of anonymity, said BC has started talks with some potential buyers. However, he cautioned that there is no guarantee that the talks will end in an agreement.
BC considers OSL sale despite exchange’s status as cash cow
Apart from exchange services, OSL also offers custody services and prime brokerage. Additionally, the company provides infrastructure to companies wishing to start crypto trading. Speaking on a possible sale, the people indicated that BC Technology may only sell parts of OSL and not the entire company.
a b c technology interim report It turned out that OSL is the company’s main source of income. In general, BC Technology’s net loss improved to HK$95 million in the six months ended June, up from HK$300 million recorded in the same period last year. However, crypto trading volume on OSL fell nearly 50% from the same period a year earlier, to HK$112.6 billion.a
Since August, BC Technology’s valuation has reached nearly HK$1.9 billion, an increase of more than 100%. However, BC is considering the sale of OSL. At this time, neither BC Technology nor OSL have officially confirmed the sale or given a reason. Bloomberg said that in response to a question about the news, a representative for BC Technology said the company “does not comment on market rumors and speculation.”
OSL and Hashkey Exchange are the only platforms in Hong Kong that are legally allowed to provide crypto trading services. In August, O.S.L. announced That it received a license upgrade from the Securities and Futures Commission (SFC). Uplift allows OSL to offer users instant crypto trading, starting with Bitcoin (BTC) and Ethereum (ETH).
hash key launched Crypto trading services in Hong Kong on 28 August. The exchange received two licenses, Type 1 and Type 7. These enabled the company to run a crypto trading platform and also provide automated trading services to users. Hashkey’s license allows it to include both retail and institutional investors.
Hong Kong regulatory environment
In June, Hong Kong introduced crypto trading guidelines for retail investors. According to SFC CEO Julia Leung, the new rules aim to “provide stronger protection for investors and manage key risks.” OSL director and head of regulatory affairs Gary Tu praised the new rules. According to TU, the SFC guidelines are good enough for use in other markets.
Speaking on the regulations, Tiu said the Hong Kong government has set strict requirements and it expects all service providers to follow them. Although there are only two licensed companies in Hong Kong, Tiu said competition is good for the market. in one InterviewThe OSL executive said the company is always ready for more competition. He said competition helps drive innovation and gives users more choices.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip down the secrets of crypto stories to the basics so that anyone anywhere can understand without too much background knowledge. When Tolu is not deeply immersed in crypto stories, he enjoys music, loves to sing and is an avid film buff.
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