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HONG KONG (Reuters) – Hong Kongs markets regulator has actually concurred in concept to provide a license to cryptocurrency company OSL Digital Securities, a system of Fidelity-backed BC group (0863. HK), the company said in an exchange filing on Friday.
OSL said last November it had actually ended up being the first company to obtain a digital asset license from Hong Kongs Securities and Futures Commission (SFC) under new guidelines allowing crypto exchanges to decide into regulation. No other company has so far said it has actually gotten such approval.
Monetary regulators worldwide have been discussing whether and how they need to manage the cryptocurrency or virtual property market.
OSL, and a few of its rivals, say they welcome policy in order to make it easier to supply services to banks wishing to trade cryptocurrencies.
BC Group CEO Hugh Madden stated that a person advantage of being licenced was that regulated organizations would have the ability to reduce their threat by having the ability to engage with other managed entities.
BC Group supplies service park and advertising services in addition to its cryptocurency organization, which represents the bulk of its profits. It made a bottom line of 90.8 million yuan ($ 13.13 million) in the very first half of 2020, according to its interim outcomes.
Last approval is subject to certain conditions, the filing stated, without identifying them. Madden stated that these were “as you d anticipate from a conservative regulator in a financial hub.”
Other Asian regulators are likewise aiming to control cryptocurrency business.
Singapore is in the process of bringing in licencing for digital asset companies, and some exchanges have actually chosen to obtain licences there instead of Hong Kong as the rules are less prescriptive.
Japans Financial Services Agency currently licences some cryptocurrency exchanges.
Reporting by Alun John; Editing by Nick Tattersall
