Hong Kong SFC approves first crypto exchange licence

Source: LeapRate 2020-08-26

Hong Kong’s markets regulator has agreed in principle to issue a licence to a cryptoasset firm for the first time. OSL Digital Securities, part of Fidelity-backed BC Group, said on Friday it had received the approval in principle, according to a Reuters report.

BC Group provides business park and advertising services as well as its cryptocurency business, which accounts for the bulk of its revenues. The company made a net loss of US$13.13 million in H1 2020.

LeapRate reminds that OSL shared it had become the first firm to apply for a digital asset licence from Hong Kong’s SFC under new rules allowing crypto exchanges to opt into regulation back in November 2019. This is the first company that has received such approval.

BC Group CEO Hugh Madden commented about the benefits of being licenced and that regulated institutions could reduce their risk by being able to engage with other regulated entities.

Final approval is subject to certain conditions, however no other details have yet been shared. Madden said that these were:

The approval comes amid a pause for leading cryptoasset Bitcoin. Having set new highs for the year a week ago, Bitcoin has retreated below the $12,000 mark and is now trading at $11,652 as investors look for the next event to spark more buying.

SFC

Cryptoasset

Hong Kong SFC approves first crypto exchange licence

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