In what can be implied as a key development, Hong Kong’s Securities and Future’s commission is on the verge to issue the city’s first and foremost license to OSL Digital securities. OSL is the Hong Kong region’s most extensive digital asset platform that provides a virtual asset trading platform to trade in cryptos, securities and futures. It is a unit within the Fidelity backed Blockchain group. The group has confirmed that the sole authority has agreed in principle to issue a license.
OSL’s bid for a license
OSL has confirmed that it became the first organization in the region to apply for a digital asset license from Hong Kong’s Securities and Futures commissions. This was essentially done after the ingress of new rules and regulations allowing the crypto exchanges to opt into regulations. Many other firms working on the same lines have also confirmed that apart from OSL no other firm has received any such approval because regulators in the market have been in a quandary as to how and under what circumstances cryptocurrency or the virtual asset industry must be regulated.
Benefits of the license
The BC group came ahead and cited that such a development is good for the future prospects of the company. Hugh Madden, the Chief Executive of the BC Group is positive that with the license approval coming along, the ease of doing business will increase because key regulated entities will come together and work in a regulated space. The final approval for the project is still awaiting minute details which when provided will complete the due diligence. The company refrained from commenting about what these details were as they were not considered major.
About BC group
BC group is a huge conglomeration of ideas. Apart from the discussed business, it also provides advertising services with a business park. Its cryptocurrency business is its major revenue generator and cash cow. The first half of the year was not exactly rosy for the giant where it reported a net loss of 90.8 million yuan (S$18 million).
On the question about why the final approval hasn’t come forth yet, Mr. Madden pointed out that, “there were as you’d expect from a conservative regulator in a financial hub”.
Mr. Madden also continued by saying that several Asian regulators are now looking forward to creating an amicable atmosphere for firms to function. These Asian regulators are seeking ways to regulate the firms in their regions. Singapore already is under deliberation to bring the culture of licensing for digital asset firms. Many exchanges also seek licenses from regulators in the Republic instead of Hong Kong because the latter has more forceful and tyrannical rules to get the license.
This comes at a time when financial regulators of the Asian markets have been debating whether or how they should be regulating the cryptocurrency industry. Hong Kong regulator’s move to inch towards the approval will create a ripple effect in motivating regulators to up their regulatory requirements yet, providing the needed liberty in the industry.