OSL is now legally authorized to run managed brokerage services, and automated digital asset trading services as the crypto trading network has finally secured a Hong Kong license.
OSL, a central digital asset portal in Asia and a unit of the Fidelity-backed BC group, was officially licensed by the Hong Kong Securities and Futures Commission.
The new license enables OSL Digital Securities to run managed brokerage and automatic trading services for digital properties, according to a Dec. 15 statement. The news comes shortly after the SFC decided to issue a license to OSL in August 2020, in theory. OSL has successfully undergone the stringent vetting criteria of the SFC, according to the announcement.
Wayne Trench said that Institutional interest in Bitcoin and other digital assets has grown exponentially over the past few years and has reached a new period of licensing development in Hong Kong. Wayne made it clear that Institutions and other skilled investors, including HNWIs and family offices, are now able to exchange digital assets with the most robust and trusted digital asset marketplace in the country. Since the system is under the auspices of a significant global regulator and modelled on current financial services licenses, consumers can easily transact under the standards and safeguards they are used to. This digital asset exchange network of OSL Digital Securities will support significant digital assets such as Bitcoin (BTC) and Ether (ETH), as well as special security token offers, or STOs, at launch.
On crypto-assets such as Bitcoin, the platform would provide insurance cover, keeping the assets in customer-segregated wallets. To mitigate the risk of market misconduct by market monitoring, OSL will maintain know-your-customer and anti-money laundering regulations, the statement reads.
Matt Long, Head of Distribution and Prime at OSL, stressed that digital infrastructure and capital markets are the future of licensed businesses. In terms of secured regulatory permissions, the exec also emphasized that OSL is the first mover globally. Matt said that “OSL now stands apart from the competition as an innovative first mover, as the world’s only listed, SFC-licensed, Big 4 audited and insured digital asset platform for institutions and professional investors to securely onboard into the digital asset economy.”
Moreso, the Hong Kong licenses, OSL also sought a digital asset license from the Monetary Authority of Singapore under the Payment Services Act of the region, the announcement says.
Fidelity International, a division of the U.S. wealth management giant Fidelity Investments, completed a direct investment earlier this year in BC Corporation, a Big-4-audited company and an OSL provider. For a 5.6 per cent ownership stake, Fidelity bought 17 million shares, reportedly spending more than $14 million in the firm.
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