Hong Kong now has its first regulated cryptocurrency trading platform. The Securities and Futures Commission has just issued the first-ever crypto license to OSL Digital Securities, which will soon begin trading for a variety of cryptocurrencies, including bitcoin.
Hong Kong issues first crypto license
Hong Kong’s Securities and Futures Commission (SFC) has licensed the first crypto trading platform in Hong Kong. The securities regulator announced on Wednesday:
It has first licensed a virtual asset trading platform in Hong Kong.
The SFC website reveals that OSL Digital Securities Ltd. was licensed on December 15. The Asian digital asset platform, a member of Hong Kong-listed BC Technology Group, is licensed for Type 1 (securities trading) and Type 7 (provision of automated trading services) regulated activities. The regulator explained that the platform will only “serve professional investors under the close supervision of the SFC” and “will be subject to tailored requirements similar to those applicable to brokers and automated trading platforms.”
Under Hong Kong’s existing crypto regulations is the registration of crypto exchanges optional but in a consultation launched in November, the government proposed a new regulatory framework for cryptocurrency which allows the SFC to regulate all centralized crypto exchanges. The SFC stressed that its approach to regulating cryptocurrencies “is consistent with the recommendations of international standardization bodies.”
OSL explained that when registration was optional, it chose to be licensed and “underwent the SFC’s stringent vetting requirements.” The company now describes itself as the world’s first SFC licensed, publicly traded, digital asset wallet insured, Big-4 audited digital asset trading platform for institutions and professional investors. OSL explained:
Upon commissioning, OSL Digital Securities will provide clients with safe, secure and compliant trading access to bitcoin (BTC), ethereum (ETH) and other high-quality cryptocurrencies, along with select security token offerings (STOs).
“Licensed entities are the future of digital assets and capital markets in the digital age and professional investors, hedge funds and family offices are now rapidly increasing portfolio allocations to digital assets such as bitcoin,” said Matt Long, OSL Head of Distribution and Prime.
In addition to the Hong Kong licenses, OSL has also filed with the Monetary Authority of Singapore for a license for digital assets under the Payment Services Act.
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