OSL Exchange CEO: Expansion Plans After Historic Year in Hong Kong

Hong Kong regulators approved retail crypto trading last August, and the first two firms to receive licenses under the new rules were crypto exchanges HashKey and OSL. Both companies have benefited greatly from regulation. OSL, previously known as BC Technology Group, secured a $90 million investment shortly after receiving its license. In its most recent financial report, OSL disclosed revenue of $13.4 million from its digital assets and blockchain platform business, a 1,767% increase from the same period in the first half of 2022.

During an exclusive interview with Cointelegraph, Patrick Pan, CEO of OSL, revealed that the exchange plans to list altcoins as soon as they are approved by the Securities and Futures Commission (SFC) of the region. Pan emphasized that any decision to list new assets or products would be made in strict adherence to regulatory guidelines and market demand. Additionally, OSL is exploring a Fund Token initiative for the tokenization of retail fund products, pending authorization from the SFC.

Regulators in Hong Kong have also been actively exploring new digital asset initiatives. On December 27, 2023, the Financial Services and Treasury Bureau and the Hong Kong Monetary Authority issued a public consultation paper on the legislative proposal for regulating stablecoin issuers in the region. Pan believes that the regulatory environment is moving towards greater inclusivity and robustness, which may lead to the approval of a broader range of digital assets, including stablecoins, for listing in the near future.

OSL has plans to expand its operations beyond Hong Kong and Singapore and will prioritize digital finance as a key part of its corporate strategy. When it comes to user protection, Pan assured that the exchange’s hot wallets and cold wallets are insured by Lloyds of London. The company’s financials are audited by PricewaterhouseCoopers annually, providing transparency about its operations and financial health.

Despite a scandal involving unregulated crypto exchanges JPEX and Hounax, regulated firms like OSL and HashKey continue to gain momentum. The SFC has issued further license approvals to companies such as Victory Securities, and HashKey Group received a $100 million Series A investment, reaching unicorn status on January 16.