Relying on present BC Know-how discussions with potential patrons, the corporate would possibly conclude a sale of all or components of its OSL trade.
BC Know-how Group, the mum or dad firm and proprietor of Hong Kong crypto trade OSL is seeking to promote the trade. In response to a Bloomberg article referencing folks acquainted with the matter, BC hopes to finish the OSL sale at a HK$1 billion ($128 million) price ticket.
Pleading anonymity, the folks acquainted with the matter stated BC has began conversing with a couple of potential patrons. Nevertheless, they warned that there is no such thing as a assure that the conversations will finish in a deal.
BC Considers OSL Sale Regardless of the Trade’s Place as Money Cow
Along with trade providers, OSL additionally presents custody providers and prime brokerage. Moreover, the corporate gives infrastructure to corporations seeking to launch crypto buying and selling. Talking on the attainable sale, the folks hinted that BC Know-how might solely promote components of OSL and never all the firm.
A BC Know-how interim report revealed that OSL is the corporate’s main revenue supply. Typically, BC Know-how’s internet loss improved to HK$95 million within the six months ended June, from the greater than HK$300 million recorded for a similar interval final yr. Nevertheless, the crypto buying and selling quantity on OSL practically crashed 50% to HK$112.6 billion from the identical interval a yr earlier.a
Since August, BC Know-how’s valuation has practically hit HK$1.9 billion, a greater than 100% spike. Nonetheless, BC is mulling a sale of OSL. In the mean time, neither BC Know-how nor OSL has formally confirmed the sale or supplied a cause. Bloomberg famous that in response to a question concerning the information, a BC Know-how consultant said that the corporate doesn’t “touch upon market rumors and speculations.”
OSL and HashKey Trade are the one platforms in Hong Kong legally permitted to supply crypto buying and selling providers. In August, OSL announced that it obtained a license uplift from the Securities and Futures Fee (SFC). The uplift permits OSL to right away provide customers crypto buying and selling, beginning with Bitcoin (BTC) and Ethereum (ETH).
HashKey launched crypto buying and selling providers in Hong Kong on August 28. The trade received two licenses, the Kind 1 and Kind 7. These enabled the corporate to run a crypto buying and selling platform and likewise provide customers automated buying and selling providers. HashKey’s license additionally allowed it to onboard each retail and institutional traders.
HongKong Regulatory Atmosphere
In June, Hong Kong launched crypto buying and selling pointers for retail traders. In response to SFC’s CEO Julia Leung, the brand new guidelines goal to “present strong investor safety and handle key dangers.” OSL’s Director and Head of Regulatory Affairs Gary Tiu praised the brand new guidelines. In response to Tiu, the SFC’s pointers are ok for different markets to make use of.
Talking on the foundations, Tiu famous that the Hong Kong authorities has stipulated strict necessities it expects all service suppliers to observe. Though there are solely two licensed corporations in Hong Kong, Tiu famous that competitors is sweet for the market. In an interview, the OSL exec stated the corporate is at all times prepared for extra competitors. He added that competitors helps innovation and provides customers extra choices.
Tolu is a cryptocurrency and blockchain fanatic primarily based in Lagos. He likes to demystify crypto tales to the naked fundamentals in order that anybody anyplace can perceive with out an excessive amount of background information.
When he is not neck-deep in crypto tales, Tolu enjoys music, likes to sing and is an avid film lover.