We continue to maintain a careful approach to regulation, risk management, security and compliance
We have had no exposure to stETH, Luna, UST
We have no exposure to any of the firms reportedly facing solvency issues
Our regulatory requirements provide significant levels of investor protection which we believe will likely become mandatory for licensed participants over time
Please contact us to learn more
Over the last couple of months and in particular the last few days, we’ve seen significant dislocation in crypto markets causing significant downward price action. These sharp moves lower have also exposed several risks in the marketplace including calling into question the solvency of some of the more well known market participants. For the team at OSL, since beginning our journey in Digital Assets almost 10 years ago, we have purposefully taken a careful and conservative approach to the way we do business and in times like these, we believe our strategy is well justified.
To that end, our strategy remains unchanged: deliver a market-leading service to institutional and professional investor customers who highly value regulation, security and compliance. In addition, we place heavy emphasis on a responsible approach to risk management, and our business is laser focused on providing a high-quality platform for our clients to store and trade digital assets. As such, we are pleased to share that we’ve had zero exposure to any of the recent incidents regarding UST, Luna, stETH or to any of the participants in the market who appear to be facing solvency issues.
Whilst we continue to embrace innovation as the lifeblood of our industry, we’ve deliberately adopted a careful approach when expanding into new business initiatives and at the same time, we take great care to be compliant with relevant regulatory requirements in the markets in which we operate. In fact, we believe our licensing is a key differentiating factor for us and longer term, the conditions with which we must comply in our Hong Kong licensed entity will likely become mandatory for all high quality firms participating in the space. This includes investor protection mechanisms like customer segregated bank accounts, customer segregated wallets, customer suitability tests and the like. We encourage anyone who wants to learn more about these types of protections to contact us.
Despite recent market events, we’re more confident than ever that digital assets are here to stay. Talent and infrastructure investment into the sector continues to accelerate in tandem with technological innovation. In addition, regulation continues to evolve, and while there’s more work to do, the landscape will become more robust and clear than ever before. Over time, we strongly believe that regulatory evolution, combined with the digital asset industry’s innovation and infrastructure improvements, will provide a long-term tailwind to create significant step changes and efficiencies in the market going forward.
As always, we encourage all of our customers and participants in the market to maintain a sensible approach to diversification and risk management as this will ultimately help the industry progress more quickly and sustainably. What’s more, once the dust settles, there’s very likely going to be some significant opportunities that present themselves for those with a steady hand but until then, hold onto your hats!