Hong Kong now has its first regulated cryptocurrency trading platform. The Securities and Futures Commission has just given out the first-ever crypto license to OSL Digital Securities which will soon commence trading for several cryptocurrencies, including bitcoin.
Hong Kong Gives Out First Crypto License
The SFC website shows that OSL Digital Securities Ltd. was licensed on Dec. 15. The Asian digital asset platform, a member of the Hong Kong stock exchange-listed BC Technology Group, is licensed for Type 1 (dealing in securities) and Type 7 (providing automated trading services) regulated activities. The regulator explained that the platform will only â€œserve professional investors under the close supervision of the SFCâ€ and â€œwill be subject to tailor-made requirements similar to those which apply to securities brokers and automated trading venues.â€
Under Hong Kongâ€™s existing crypto regulation, registration of crypto exchanges is optional but in a consultation launched in November, the government proposed a new crypto regulatory framework that allows the SFC to regulate all centralized crypto exchanges. The SFC emphasized that its approach to regulating cryptocurrencies â€œis consistent with the recommendations of international standard-setting bodies.â€
OSL explained that when registration was optional, it opted to be licensed and â€œunderwent the SFCâ€™s rigorous vetting requirements.â€ The company now describes itself as â€œthe worldâ€™s first SFC-licensed, listed, digital asset wallet-insured, Big-4 audited digital asset trading platform for institutions and professional investors.â€ OSL explained:
â€œLicensed 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,â€ commented Matt Long, OSL Head of Distribution and Prime.
In addition to the Hong Kong licenses, OSL has also applied with the Monetary Authority of Singapore for a digital asset license under the Payment Services Act.
What do you think about Hong Kong issuing its first crypto license? Let us know in the comments section below.
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