Hong Kong Crypto Exchanges Surge Post-Regulation: OSL and HashKey Lead the Charge
Summary:
Following Hong Kong regulators' endorsement of retail cryptocurrency trading, exchanges HashKey and OSL were the first to receive licenses under the new policy. OSL secured $90 million investment soon afterward, and it reported significant revenue growth. OSL's CEO Patrick Pan revealed that they plan to introduce additional cryptocurrencies pending regulatory approval and are also exploring a Fund Token initiative for retail fund product tokenization. The exchange aims to extend its operations beyond Hong Kong and Singapore, focusing on digital finance. Meanwhile, HashKey Group recently achieved unicorn status with a $100 million Series A investment.
Following Hong Kong regulators' historic endorsement of retail cryptocurrency trading in August, HashKey and OSL emerged as the initial duo to receive licenses under the novel policies. Both companies have seen significant benefits from this regulatory shift. The publicly-traded exchange OSL, previously known as BC Technology Group, soon secured an investment of $90 million. Reporting revenues of 105 million Hong Kong dollars ($13.4 million) from its digital assets and blockchain business in its latest financial update, the firm noted a staggering increase of 1767% compared to the first half of 2022.
In an exclusive discussion with Cointelegraph, OSL's CEO Patrick Pan revealed plans to introduce alternative cryptocurrencies (altcoins) pending approval from the local Securities & Futures Commission (SFC). "While we continually seek to diversify our portfolio, any decision to introduce new assets will strictly align with regulatory requirements and market needs," stated Pan.
Further, Pan disclosed that the company is examining a Fund Token scheme for retail fund product tokenization. "If permitted by the SFC, these Fund Tokens, symbolizing shares in a unique collective investment scheme under the Harvest-OSL banner, will be available for Hong Kong's retail investors," claimed the CEO.
Regulators have demonstrated interest in novel digital asset ventures, too. The Financial Services and the Treasury Bureau (FSTB) along with the Hong Kong Monetary Authority published a public consultation paper on a legislative proposal to control stablecoin issuers in the region on December 27, 2023. "With a regulatory landscape that is becoming increasingly robust and inclusive, the SFC may approve a wider array of digital assets, including stablecoins, for listing in the foreseeable future," commented Pan.
Throughout the rest of the year, the exchange aspires to broaden its reach beyond Hong Kong and Singapore, prioritizing digital finance in its business strategy. On the subject of customer security, Pan clarified that both hot and cold wallets of the exchange are insured by Lloyds of London, and their financial audit is conducted by PricewaterhouseCoopers. "Our publicly accessible audited financials offer a transparent insight into our operations and financial stability," Pan pointed out, "This audit happens annually."
Despite scandals involving non-compliant crypto exchanges such as JPEX and Hounax, regulated companies continue to thrive. Following OSL and HashKey, the SFC granted additional licenses to firms including Victory Securities. Meanwhile, HashKey Group achieved unicorn status with the infusion of a $100 million Series A investment on January 16.
Published At
1/22/2024 6:32:36 PM
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