- BC Technology Group is considering selling its licensed crypto platform, OSL, amidst challenges in the crypto market and declining trading volumes.
- A special task force, established by the Hong Kong Securities and Futures Commission (SFC) and the Hong Kong Police Force, aims to combat unlawful activities in local crypto exchanges.
- The future of OSL and the crypto industry in Hong Kong remains uncertain as BC Technology explores potential sales while regulators take proactive steps to address challenges in the crypto sector.
BC Technology Group Ltd., a significant player in the digital asset sector, is considering selling its licensed crypto platform, OSL.
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This decision comes at a time when the crypto market is facing challenges, including declining trading volumes for digital assets. OSL has been a pioneer in offering a wide range of services in the cryptocurrency landscape.
These services include prime brokerage, exchange, and custody solutions. OSL also provides infrastructure support to financial institutions for their virtual-asset trading requirements.
What makes this potential sale even more interesting is the strong interest from potential buyers. Industry players are showing a keen interest, with the proposed valuation reaching $HK1 billion, approximately $128 million.
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However, this decision comes at a challenging time for crypto exchanges operating in Hong Kong. The previous year’s market instability, along with a series of notable bankruptcies, has significantly reduced demand for cryptocurrencies.
To compound the situation, Hong Kong’s stringent regulations for digital assets have led to increased operating costs for companies like OSL.
The challenges do not stop there. The reputation of the crypto sector in Hong Kong has suffered a blow due to a recent scandal involving the unlicensed JPEX exchange.
Authorities allege that it defrauded investors of HK$1.6 billion. This only adds to the growing concerns surrounding the cryptocurrency industry in the region.
Establishment of Special Task Force Hong Kong Authorities
To tackle these problems, the Hong Kong Securities and Futures Commission (SFC) has joined forces with the Hong Kong Police Force to create a special task force. This task force has one goal: to fight against unlawful activities on crypto exchanges operating in Hong Kong. This includes doing a thorough assessment of platforms that seem suspicious.
The task force is a team effort, bringing together members from various Hong Kong authorities. This includes the HKPF’s Commercial Crime Bureau, Cyber Security and Technology Crime Bureau, Financial Intelligence and Investigations Bureau, as well as the SFC’s Enforcement Division and Intermediaries Division.
This united front shows how seriously Hong Kong is taking the challenges posed by illegal activities in the crypto world.
The task force was set up after a high-level meeting between the two parties on September 28, 2023.
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In an official statement, the SFC said, “The working group was established to improve cooperation in monitoring and investigating illegal activities related to Virtual Asset Trading Platforms (VATPs).”
This proactive approach aims to rebuild trust and integrity in the crypto sector in the country, ensuring that both investors and businesses can operate with confidence.