In a landmark year for Hong Kong’s cryptocurrency sector, OSL Exchange has emerged as a key player following the region’s regulatory green light for retail crypto trading. The approval, granted in August last year, positioned OSL and HashKey as the first licensed exchanges under the new regulations. This move has significantly benefited both firms, with OSL, previously BC Technology Group, securing a substantial $90-million investment.
The company’s impressive financial performance, as revealed in its latest report, shows a staggering 1,767% increase in revenue from its digital assets and blockchain platform, reaching 105 million Hong Kong dollars ($13.4 million). Patrick Pan, OSL’s CEO, in an exclusive interview, shared that the exchange is on the cusp of listing alternative cryptocurrencies (altcoins), pending approval from the Securities and Futures Commission (SFC) of the region.
Pan emphasized the exchange’s commitment to regulatory compliance and market demand in expanding their product offerings. OSL is also exploring the innovative Fund Token initiative, which, upon SFC authorization, will allow retail investors in Hong Kong to invest in shares represented by these tokens under the Harvest-OSL brand.
The regulatory landscape in Hong Kong is evolving to include new digital asset initiatives. This was highlighted by the recent public consultation paper issued by the Financial Services and Treasury Bureau (FSTB) and the Hong Kong Monetary Authority on regulating stablecoin issuers. Pan is optimistic about this development, anticipating a broader range of digital assets, including stablecoins, being approved for listing.
Looking ahead, OSL Exchange plans to expand its footprint beyond Hong Kong and Singapore, focusing on digital finance as a core aspect of its strategy. Pan reassured users about security measures, mentioning insurance for the exchange’s wallets by Lloyds of London and financial audits by PricewaterhouseCoopers, ensuring transparency and operational integrity.
Despite recent scandals involving unregulated crypto exchanges, regulated firms like OSL continue to thrive. The SFC has granted further licenses to companies such as Victory Securities, while HashKey Group recently achieved unicorn status with a $100-million Series A investment, underlining the growing momentum in the regulated cryptocurrency sector.