OSL seeks extension of Hong Kong regulator’s license

The Hong Kong-based regulated Bitcoin exchange OSL has filed with the SFC for an extension of its current license to operate the platform for trading digital assets.

OSL, the world’s first HongKong SFC-licensed and insured digital asset platform, announced that it has applied for an uplift to its existing license to facilitate retail trading, in line with the new regulatory requirements effective from June 1, 2023. https://t.co/P1kBUd3A2R

— Wu Blockchain (@WuBlockchain) June 1, 2023

The decision was taken in light of new regulatory requirements from the regulator applicable to retail investors.

The company emphasised its commitment to the SFC’s regulatory framework and said it aims to widen access to trading digital assets for all market participants.

To comply with the new rules, OSL will apply asset segregation for retail investors and implement hot and cold wallet infrastructure.

On June 1, it was also reported that NewHuo, a company linked to Huobi co-founder Lilin Li, withdrew its applications for SFC and MAS licenses. The first occurred in January 2023, the latter in November 2022.

NewHuo, a Hong Kong-listed company controlled by the former founder of Huobi Lilin, has withdrawn its application for crypto exchange license in Hong Kong and Singapore. Some people think that Hong Kong and Singapore compliant exchanges are not profitable. https://t.co/c76wo8T7LR

— Wu Blockchain (@WuBlockchain) June 1, 2023

The decision was made amid doubts about the profitability of regulated platforms. The company did not rule out the possibility of obtaining a VASP license from the Hong Kong regulator in the future.

Earlier, applications to operate as a regulated crypto exchange in the Hong Kong Special Administrative Region were filed by Huobi, OKX and BitMEX.

In January 2023, Hong Kong’s Financial Secretary Paul Chan said that the jurisdiction was ready to welcome cryptocurrency firms from around the world.

In May, HKMA head Eddie Yu said authorities would apply a tough but sensible approach to regulating cryptocurrencies.

First Digital, a Hong Kong-based custodian and trust company, announced plans to launch First Digital USD (FDUSD) — stablecoin pegged to the US dollar.