OSL Digital Securities, a Hong Kong-based digital asset platform has secured a licence for its crypto platform. The development marks the first licenced digital asset platform in Hong-Kong.
Furthermore, SFC has granted a Type 1 (dealing in securities) and Type 7 (automated trading services) licence for the crypto platform. SFC refers to the Securities and Futures Commission.
The new platform for bitcoin, ethereum and other cryptocurrencies will provide services such as custody, exchange, brokerage and security token offerings. The company has also insured digital asset wallets and an audited digital asset trading platform which were developed for professional investors and institutions.
The region’s crypto market will emphasise more on professional and institutional investors after the government decided to ban retail investor access. The professional investor is expected to be high net worth individuals with some crypto trading experience and demonstrates strong crypto knowledge.
The company has also applied for a digital asset licence in Singapore from the country’s monetary authority in accordance with the Payment Services Act.
OSL head of distribution and prime Matt Long, told the media, “Licenced 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. The OSL digital asset platform business saw a 47 percent year-on-year revenue increase in the first six months of 2020, driven in part by record-high trading volumes of $28 billion.”