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Hong Kong Emits First Crypto License to Fidelity-Backed Company for Operations with BTC, ETH and STOs

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Tue, 12/15/2020 - 15:15
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Yuri Molchan
Colin Wu has tweeted that Hong Kong has finally issued a license for OSL Digital Securities to start regulated commercial activities with BTC and ETH, as well as STOs
Hong Kong Emits First Crypto License to Fidelity-Backed Company for Operations with BTC, ETH and STOs
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Chinese crypto journalist Colin Wu has tweeted an exclusive announcement that Hong Kong regulators have finally issued a crypto trading license to OSL Digital Securities owned by crypto company BC Group, which is backed by Fidelity.

Now, the company is allowed to conduct regulated brokerage on crypto assets and provide automated trading with Bitcoin (BTC) and Ethereum (ETH) and to conduct security token offerings (STOs).

BTC
Image via Twitter

OSL Digital Securities finally gets a crypto license

Colin Wu has shared insider data that a regulator in Hong Kong, the Securities and Futures Commission (SFC), has issued the first license for crypto assets to OSL Digital Securities.

This company is a unit of the Hong Kong-based crypto company BC Group, in which Fidelity acquired a $14.2 million stake in February of this year.

The license that has been given to OSL can only be granted to professional investors or financial institutions with an asset value of over 8 million HKD: $1,031,996.

Colin Wu has emphasized that the global community is now watching to see if this act by Hong Kong will serve as an example for Beijingif it may consider beginning to lift its cryptocurrency ban imposed in the fall of 2017.

The OSL license was generally approved back in August, as reported in a Reuters article dated Aug. 21.

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First company in HK to get a crypto trading license

In the fall of 2019, OSL ventured to file an application for a crypto trading license from Hong Kong's SFC regulator, since new laws in HK already allowed crypto companies to work with the blessing of regulators.

This is the only company in Hong Kong so far to be given this type of license.

While many cryptocurrency firms are debating whether regulation is good or bad for crypto, OSL Digital Securities welcomes it as regulation allows service provision to those institutions that wish to trade crypto.

Besides, the parent company, BC Group, believes that regulation enables institutions to collaborate with each other, thus reducing their risk.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.