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