OSL CEO Talks Expansion Following Record Year in Hong Kong
Hong Kong’s regulatory authorities greenlit retail cryptocurrency trading in August of last year, a move that saw HashKey and OSL emerge as the inaugural duo to receive licenses under these new regulations. This regulatory shift has significantly propelled both entities forward. OSL, previously known as BC Technology Group and now a listed entity garnered an impressive $90 million investment post-regulation.
Demonstrating remarkable growth, the company reported a skyrocketing 1,767% increase in revenue, reaching HK$105 million ($13.4 million) in the first half of the year from its blockchain and digital assets sector, compared to the same period in H1 2022.
OSL’s Future Plans and Regulatory Compliance
Patrick Pan, the Chief Executive Officer of OSL, shared in an interview that the exchange is eyeing the listing of alternative cryptocurrencies (altcoins) pending approval from the Securities and Futures Commission (SFC) of the region. “We’re constantly seeking to expand our offerings, but any new listings will strictly comply with regulatory requirements and respond to market demands,” Pan emphasized.
The firm is also delving into an innovative Fund Token initiative aimed at tokenizing retail fund products. Subject to SFC approval, these Fund Tokens, part of the Harvest-OSL collaboration, could soon be accessible to Hong Kong’s retail investors.
Regulatory Bodies Embracing Digital Assets
The Financial Services and Treasury Bureau (FSTB) and the Hong Kong Monetary Authority took a significant step by releasing a consultation paper on December 27, 2023, focusing on the regulation of stablecoin issuers. “The regulatory landscape is shifting towards more inclusivity and robust frameworks, potentially opening doors for a wider array of digital assets, including stablecoins, for future listings,” Pan observed.
Looking ahead, OSL plans to broaden its horizons beyond Hong Kong and Singapore, concentrating on digital finance as a key strategic pillar. To ensure user safety, Pan highlighted the insurance coverage for both their hot and cold wallets by Lloyds of London and the auditing of their financials by PricewaterhouseCoopers. “Our audited financials, which are publicly available, offer a transparent glimpse into our operational and financial health, and this audit is conducted annually,” he added.
Despite controversies surrounding unregulated exchanges like JPEX and Hounax, regulated firms like OSL and HashKey are gaining traction. Following them, the SFC has granted licenses to other firms, including Victory Securities. Notably, HashKey Group recently secured a $100-million Series A investment, elevating it to unicorn status.