Hong Kong’s OSL Crypto Exchange Explores Sale at $128 Million Valuation

Last updated:
Author
Author
Jai Pratap
About Author

Jai serves as the Asia Desk Editor for Cryptonews.com, where he leads a diverse team of international reporters. Jai has over five years of experience covering the web3 industry.

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Source: Adobe / Dmitry Rukhlenko

Hong Kong-based BC Technology Group Ltd. is reportedly in the early stages of considering the sale of its crypto exchange platform OSL. 

OSL is one of only two exchanges in Hong Kong licensed under the digital-asset rules introduced by the city in June. 

As per the Bloomberg report, BC Technology has been testing the waters, reaching out to potential buyers, including industry players and investment funds. 

Sources familiar with the matter have hinted at a valuation of approximately HK$1 billion, equivalent to $128 million, in discussions.

OSL’s platform plays a multifaceted role within the crypto ecosystem, offering prime brokerage, exchange, and custody services for the crypto market. 

Additionally, it provides essential infrastructure to financial institutions, facilitating their engagement in virtual-asset trading. 

The possibility of a partial sale of OSL, rather than an outright sale of the entire business, is also under consideration, sources have disclosed.

The report further cited its sources saying that there is no assurance that these deliberations will culminate in a finalized deal.

Hong Kong Pushes Stringent Regulatory Framework 

This development unfolds in the context of Hong Kong’s efforts to position itself as a hub for the digital asset sector

New digital-asset regulations were introduced on June 1, enabling retail investors to trade larger tokens on licensed exchanges. 

Despite this regulatory push, demand for cryptocurrencies in Hong Kong has been somewhat lackluster, partly attributed to the fallout from last year’s market turbulence and subsequent business failures. 

The stringent regulatory framework in Hong Kong may result in higher operating costs for crypto-related businesses.

BC Technology’s interim report shows a reduction in net losses, narrowing from HK$300 million to HK$95 million in the six months ended in June. 

OSL’s digital assets and blockchain platform business have played a pivotal role in BC Technology’s income, according to the report. 

However, the interim report also reveals that the digital-asset trading volume on OSL decreased by nearly half, from HK$112.6 billion in the first half of 2022 to the same period in 2023.

BC Technology’s Shares Down 80% From Its Peak

BC Technology’s market value has experienced fluctuations, with recent growth pushing it to nearly HK$1.9 billion from a low point in August of the same year.

Despite this increase, the company’s shares are still down by 80% from their peak in June 2021, during the cryptocurrency boom triggered by the pandemic.

OSL had previously withdrawn its application for a digital-asset license in Singapore and is now preparing a revised submission.

In this process, some of its Singapore-based clients are being relocated to the exchange in Hong Kong, according to an individual familiar with the matter.

Currently, HashKey Exchange is the only other platform in Hong Kong with a crypto permit. The already stringent licensing process may face heightened scrutiny following the controversy surrounding the unlicensed JPEX exchange, which authorities allege defrauded investors of HK$1.6 billion.

More Articles

Blockchain News
N.Korean Hackers Boost Crypto-Looting Methods: Hiding Malware in GitHub, NPM Packages
Sead Fadilpašić
Sead Fadilpašić
2025-02-13 16:03:27
Press Releases
Crypto AI Agent Market Cap Rises By $139m, MIND of Pepe Token Smashes $6M in Must-Buy ICO
2025-02-13 15:36:14
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors