Relying on present BC Know-how discussions with potential patrons, the corporate would possibly conclude a sale of all or components of its OSL alternate.
BC Know-how Group, the mother or father firm and proprietor of Hong Kong crypto alternate OSL is seeking to promote the alternate. Based on a Bloomberg article referencing folks aware of the matter, BC hopes to finish the OSL sale at a HK$1 billion ($128 million) price ticket.
Pleading anonymity, the folks aware of the matter mentioned BC has began conversing with a number 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 Change’s Place as Money Cow
Along with alternate providers, OSL additionally presents custody providers and prime brokerage. Moreover, the corporate supplies infrastructure to corporations seeking to launch crypto buying and selling. Talking on the doable sale, the folks hinted that BC Know-how might solely promote components of OSL and never your entire firm.
A BC Know-how interim report revealed that OSL is the corporate’s main earnings 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 almost crashed 50% to HK$112.6 billion from the identical interval a yr earlier.a
Since August, BC Know-how’s valuation has almost hit HK$1.9 billion, a greater than 100% spike. Nonetheless, BC is mulling a sale of OSL. In the intervening time, neither BC Know-how nor OSL has formally confirmed the sale or offered a motive. Bloomberg famous that in response to a question in regards to the information, a BC Know-how consultant acknowledged that the corporate doesn’t “touch upon market rumors and speculations.”
OSL and HashKey Change 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 supply 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 alternate received two licenses, the Kind 1 and Kind 7. These enabled the corporate to run a crypto buying and selling platform and likewise supply customers automated buying and selling providers. HashKey’s license additionally allowed it to onboard each retail and institutional traders.
HongKong Regulatory Setting
In June, Hong Kong launched crypto buying and selling tips for retail traders. Based on SFC’s CEO Julia Leung, the brand new guidelines intention to “present sturdy investor safety and handle key dangers.” OSL’s Director and Head of Regulatory Affairs Gary Tiu praised the brand new guidelines. Based on Tiu, the SFC’s tips are adequate for different markets to make use of.
Talking on the principles, Tiu famous that the Hong Kong authorities has stipulated strict necessities it expects all service suppliers to comply with. Though there are solely two licensed corporations in Hong Kong, Tiu famous that competitors is nice for the market. In an interview, the OSL exec mentioned the corporate is all the time prepared for extra competitors. He added that competitors helps innovation and provides customers extra choices.
Tolu is a cryptocurrency and blockchain fanatic based mostly in Lagos. He likes to demystify crypto tales to the naked fundamentals in order that anybody wherever 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.