BC Group Statement on the SFC’s 31 October 2022 Speech on Allowing Digital Asset Retail Trading and ETFs in Hong Kong

By Gary Tiu, BC Technology Group Executive Director and Head of Regulatory Affairs

Today’s comments by the FSTB and SFC on allowing retail access to digital asset trading, security tokens and digital-asset-linked ETFs in Hong Kong is an overwhelmingly positive development for the territory’s digital asset ecosystem and supports its growth.

The move to open digital asset trading and digital asset-linked exchange-traded products to the retail market is also a positive catalyst for the licensed OSL digital asset platform business. OSL is well-placed to service the significant retail opportunity in Hong Kong by leveraging its scalable software-as-a-service and inter-connectivity with licensed brokers, banks and intermediaries.

This will lead  to greater overall participation, innovation and confidence in the local digital asset ecosystem, and will encourage economic growth as the city builds on its status as a global digital asset hub. In particular, the updated policy on retail will encourage tier-1 financial institutions to accelerate entry into digital assets in Hong Kong. The change will be a boon for institutional-focused digital asset firms such as OSL as well as the market as a whole as it brings immediate scale, very high standards of conduct, and transparency to the financial regulators.

With this clarity, Hong Kong also continues to reinforce its status as a world leader and pioneer in digital asset regulation. Regulation, resilience and adoption are the key trends in the digital asset industry – and more regulation and government support is a positive as it leads to fair competition and protects consumers, a key element of a healthy and robust market.

As the first and only Type 1 and 7 SFC-licensed digital asset platform in Hong Kong, OSL is in a prime position to gain market share as more institutional and retail investors to safely and securely adopt and transact with digital assets in Hong Kong.