Hong Kong – 15 December 2020 – OSL, Asia’s leading digital asset platform and member of BC Technology Group (stock code: 863 HK), today was the first firm to become licensed by the Securities and Futures Commission (SFC) to conduct Type 1 (dealing in securities) and Type 7 (automated trading service (ATS)) regulated activities, and is now the world’s first SFC-licensed, listed, digital asset wallet-insured, Big-4 audited digital asset trading platform for institutions and professional investors.
The license, which permits OSL Digital Securities to operate regulated brokerage and automated trading services for digital assets, was granted after the company opted into the SFC’s virtual asset regime and successfully underwent the SFC’s rigorous vetting requirements.
Upon go-live, OSL Digital Securities will offer customers safe, secure and compliant trading access to Bitcoin (BTC), Ethereum (ETH) and other high-quality cryptocurrencies, along with select security token offerings (STOs).
The SFC applies the same heightened level of regulations already governing the securities markets to digital assets, making it one of the most comprehensive and investor-friendly jurisdictions for institutional and professional investors.
“Institutional investment in Bitcoin and other digital assets has rapidly accelerated over the past several years, and has entered a new era of growth in Hong Kong with licensing,” said OSL CEO Wayne Trench. “Institutions, and other professional investors, including HNWIs and family offices, can now trade digital assets with the region’s most comprehensive and trusted digital asset platform in OSL. Because the framework is under the auspices of a leading global regulator and modeled after existing licensing for financial services, clients can trade with confidence under the protections and safeguards to which they are accustomed.”
In addition to traditional protection measures, OSL customers trading under the licenses will benefit from insurance protection on digital assets, including Bitcoin, held in client segregated wallets. Customers will undergo rigorous KYC and AML controls, and OSL will mitigate the risk of market misconduct through market surveillance, as well as transaction monitoring and additional digital-asset-specific controls.
“Licensed entities are the future of digital assets and capital markets in the digital age and professional investors, hedge funds and family offices are now rapidly increasing portfolio allocations to digital assets such as Bitcoin,” added OSL Head of Distribution and Prime Matt Long. “OSL now stands apart from the competition as an innovative first mover, as the world’s only listed, SFC-licensed, Big 4 audited and insured digital asset platform for institutions and professional investors to securely onboard into the digital asset economy.”
In addition to the Hong Kong licenses, OSL has also applied to the Monetary Authority of Singapore for a digital asset license under the Payment Services Act.
OSL will communicate with its professional investor client-base and initiate customer onboarding so clients may position themselves to trade when OSL begins to accept trades on its platform. OSL expects to announce in the coming weeks when clients may commence trading under Hong Kong’s first licensed, Big-4 audited and insured digital asset platform.
The OSL digital asset platform business experienced exceptional growth and performance in 2019 and in the first half of 2020. In its interim results announcement on 12 August 2020, BC Group experienced a year-on-year digital asset revenue increase of 47%, driven mainly by record annualized digital asset trading volumes of USD28 billion achieved during the first six months of the year.
“Our current unique position in the market is a testament to our commitment to institutional-grade performance, security and compliance,” added Trench, “The award of licenses is validation of our belief that digital assets are a key part of the global economy and the increasingly technology focused financial services ecosystem. We are more focused than ever in our commitment to leading the way in driving institutional investment in digital assets.”
About OSL and BC Technology Group
Backed by Asia’s leading public fintech and digital asset company, BC Technology Group (863.HK), OSL is the world’s first SFC-licensed and insured digital asset platform. Founded in 2018, OSL has an established history in the sector and is recognised by many as the leader in providing comprehensive regulated and licensed digital asset solutions.
OSL offers Markets services (brokerage, exchange, and custody) and SaaS technology solutions, which deliver institutional clients in addition to professional and retail investors access to the best-in-class digital asset platform, along with a fully regulated liquidity pool. OSL’s secured and insured hot and cold wallet infrastructure also ensures the safekeeping of digital assets with timely transaction settlements.
As the digital asset industry continues to evolve, so does OSL. OSL's simple and tailored approach compliantly navigates international clients through the evolving digital assets environment.
For more information, visit: osl.com and bc.group