Hong
Kong-based BC Expertise Group Ltd. is contemplating the sale of its cryptocurrency
platform, OSL, certainly one of solely two exchanges licensed beneath town’s
digital-asset rules launched in June.
Nameless
sources conversant in the matter have indicated that BC Expertise has reached
out to potential patrons, together with business gamers and funds. The discussions
have set a tentative valuation of HK$1 billion ($128 million) for OSL. Following
this information, BC Expertise’s shares noticed a major decline of as much as 16.7%
throughout early buying and selling on Tuesday, marking essentially the most substantial drop since June
12, as reported by Bloomberg Information.
OSL’s
platform gives a variety of companies, together with prime brokerage, change, and
custody for the cryptocurrency markets. It additionally gives infrastructure to
monetary establishments, permitting them to facilitate virtual-asset buying and selling.
As an alternative of a full sale, BC Expertise might decide to promote particular components of OSL,
in accordance with insiders.
It is
important to notice that these deliberations are ongoing. There isn’t a assure
that they may culminate in a deal. In response to inquiries from Bloomberg Information, a BC
Expertise consultant said: “We’re a extremely clear and
regulated firm. We don’t touch upon market rumors and speculations.”
Hold Studying
Hong Kong’s BC Expertise Group is exploring the sale of its crypto platform OSL https://t.co/ho2Krmw1jv
— Bloomberg Crypto (@crypto) October 16, 2023
Modest Demand and Increased Prices
in Crypto Market
Hong
Kong launched a complete digital-asset regulatory framework on June 1,
designed to encourage the expansion of the cryptocurrency sector and allow retail
buyers to commerce bigger tokens on licensed exchanges. Nonetheless,
market demand for cryptocurrencies stays modest following the market’s
downturn and related bankruptcies from the earlier yr. Town’s
stringent regulatory atmosphere might also entail larger operational prices.
Furthermore,
Hong Kong is fighting the repercussions of the unlicensed JPEX change
debacle. It tainted the fame of the digital-asset business.
BC
Expertise reported a discount in internet losses, from HK$300 million in the identical
interval final yr to HK$95 million for the six months ending in June, in accordance
to its interim report.
OSL’s
digital property and blockchain
platform enterprise stand out as the first revenue supply for BC Expertise, as
per the report. Through the first half of 2023, digital-asset buying and selling quantity on
OSL dipped by almost 50% to HK$112.6 billion in comparison with the identical interval the
earlier yr.
Though
BC Expertise’s market worth has elevated by greater than double to roughly
HK$1.7 billion from its low level in August this yr, the shares stay at over
80% under their peak in June 2021, which occurred in the course of the cryptocurrency
growth related to the pandemic.
It is
additionally price noting that OSL has withdrawn its utility for a digital-asset
license in Singapore and plans to submit a revised utility. As a part of this
transition, sure Singaporean shoppers are being migrated to the change in
Hong Kong.
In
Hong Kong, HashKey
Change is the one different platform holding a digital asset license. Given the
current JPEX
controversy, the licensing course of might change into extra rigorous, as authorities
allege that the change defrauded buyers of HK$1.6 billion.
Hong
Kong-based BC Expertise Group Ltd. is contemplating the sale of its cryptocurrency
platform, OSL, certainly one of solely two exchanges licensed beneath town’s
digital-asset rules launched in June.
Nameless
sources conversant in the matter have indicated that BC Expertise has reached
out to potential patrons, together with business gamers and funds. The discussions
have set a tentative valuation of HK$1 billion ($128 million) for OSL. Following
this information, BC Expertise’s shares noticed a major decline of as much as 16.7%
throughout early buying and selling on Tuesday, marking essentially the most substantial drop since June
12, as reported by Bloomberg Information.
OSL’s
platform gives a variety of companies, together with prime brokerage, change, and
custody for the cryptocurrency markets. It additionally gives infrastructure to
monetary establishments, permitting them to facilitate virtual-asset buying and selling.
As an alternative of a full sale, BC Expertise might decide to promote particular components of OSL,
in accordance with insiders.
It is
important to notice that these deliberations are ongoing. There isn’t a assure
that they may culminate in a deal. In response to inquiries from Bloomberg Information, a BC
Expertise consultant said: “We’re a extremely clear and
regulated firm. We don’t touch upon market rumors and speculations.”
Hold Studying
Hong Kong’s BC Expertise Group is exploring the sale of its crypto platform OSL https://t.co/ho2Krmw1jv
— Bloomberg Crypto (@crypto) October 16, 2023
Modest Demand and Increased Prices
in Crypto Market
Hong
Kong launched a complete digital-asset regulatory framework on June 1,
designed to encourage the expansion of the cryptocurrency sector and allow retail
buyers to commerce bigger tokens on licensed exchanges. Nonetheless,
market demand for cryptocurrencies stays modest following the market’s
downturn and related bankruptcies from the earlier yr. Town’s
stringent regulatory atmosphere might also entail larger operational prices.
Furthermore,
Hong Kong is fighting the repercussions of the unlicensed JPEX change
debacle. It tainted the fame of the digital-asset business.
BC
Expertise reported a discount in internet losses, from HK$300 million in the identical
interval final yr to HK$95 million for the six months ending in June, in accordance
to its interim report.
OSL’s
digital property and blockchain
platform enterprise stand out as the first revenue supply for BC Expertise, as
per the report. Through the first half of 2023, digital-asset buying and selling quantity on
OSL dipped by almost 50% to HK$112.6 billion in comparison with the identical interval the
earlier yr.
Though
BC Expertise’s market worth has elevated by greater than double to roughly
HK$1.7 billion from its low level in August this yr, the shares stay at over
80% under their peak in June 2021, which occurred in the course of the cryptocurrency
growth related to the pandemic.
It is
additionally price noting that OSL has withdrawn its utility for a digital-asset
license in Singapore and plans to submit a revised utility. As a part of this
transition, sure Singaporean shoppers are being migrated to the change in
Hong Kong.
In
Hong Kong, HashKey
Change is the one different platform holding a digital asset license. Given the
current JPEX
controversy, the licensing course of might change into extra rigorous, as authorities
allege that the change defrauded buyers of HK$1.6 billion.
