BC Technology Group Ltd., the owner of Hong Kong’s first licensed crypto platform, OSL, has refuted recent media reports claiming that the company is exploring the sale of its digital asset business. The firm said that the reports are “factually inaccurate and highly misleading.”
In a filing to the Hong Kong Stock Exchange on October 18, 2023, BC Technology said that the “contents and statements” made in an article by Bloomberg on October 16, 2023, are “factually inaccurate and highly misleading.”
The article, citing people familiar with the matter, said that BC Technology had “gauged interest” in OSL from possible buyers such as industry players and funds and that a HK$1 billion ($128 million) valuation had been mooted.
BC Technology said that it has not engaged in any discussions or negotiations with any parties regarding the sale of OSL or any part of its business.
The company also said that it has not received any expressions of interest or offers from any parties for the acquisition of OSL or any part of its business.
The group added that it remains committed to developing and growing its digital asset and blockchain platform business, which is its primary source of income and value.
It also said that it is confident in the future prospects of OSL and the digital asset industry in Hong Kong and globally.
BC Technology’s shares drop after Bloomberg’s article
Following the publication of Bloomberg’s article, BC Technology’s shares plunged by over 34% to HK$2.8 on October 18, 2023, according to data from Google Finance.
The company’s market capitalization dropped from HK$1.9 billion to HK$1.2 billion.
The article came amid reports that two China-tied brokers, Yax and PantherTrade, plan to apply for a virtual asset service platform (VASP) license in Hong Kong, which would allow them to offer crypto services to retail customers.
According to Nikkei Asia, the two brokers are undergoing third-party assessments to submit their applications with the Securities and Futures Commission (SFC).
Hong Kong’s Licensed Crypto Platforms: OSL Takes the Lead
OSL is one of only two crypto platforms that the SFC has granted a VASP license under a new regime that took effect on June 1, 2023. The other platform is HashKey Exchange.
The license allows the platforms to offer crypto trading, custody, and brokerage services to institutional and retail customers in Hong Kong.
OSL claims to be Asia’s leading digital asset platform, providing software-as-a-service (SaaS) solutions, brokerage services, automated trading platforms, and insured custody services to institutional and professional investors.
It operates offices in Hong Kong and Singapore.
OSL also withdrew an application for a digital asset license in Singapore and plans to submit a revised one. Some Singapore clients are migrating to the Hong Kong exchange, according to CoinDesk.
