Fidelity owned BC Technology’s OSL Digital Securities has finally obtained the Securities and Exchange Commission’s license to become the world’s first SFC-licensed, listed, digital asset wallet-insured, Big-4 audited digital asset trading platform for institutions and professional investors.
One of Asia’s most prominent digital asset platforms for investors, OSL is now licensed to conduct Type 1 (dealing in securities) and Type 7 (automated trading service (ATS)) regulated activities.
Besides the Hong Kong licenses, OSL has also applied to the Monetary Authority of Singapore for a digital asset license under the Payment Services Act.
OSL can now legally operate regulated brokerage and automated trading services for digital assets. Once it goes live, which is to be announced in the coming weeks, OSL will offer trading access to Bitcoin, Ethereum, and other cryptos along with selected security token offerings (STOs). OSL CEO Wayne Trench said,
“Institutional investment in Bitcoin and other digital assets has rapidly accelerated over the past several years, and has entered a new era of growth in Hong Kong with licensing.”
“Institutions, and other professional investors, including HNWIs and family offices, can now trade digital assets with the region’s most comprehensive and trusted digital asset platform in OSL.”
The company already opted into SFC’s virtual asset regime, and now it has completed its rigorous vetting program.
According to the official announcement, the same heightened level of regulations has applied to digital assets that govern the securities markets so clients can trade with confidence under the safeguards they are accustomed to.
OSL customers will have to undergo “rigorous” KYC and AML measures while benefitted from the additional insurance protection on digital assets. OSL Head of Distribution and Prime Matt Long noted,
“Licensed entities are the future of digital assets and capital markets in the digital age, and professional investors, hedge funds, and family offices are now rapidly increasing portfolio allocations to digital assets such as Bitcoin.”
The digital platform had “exceptional” growth in 2019 and the first half of 2020 with a year-on-year revenue increase of 47%, driven by annualized trading volumes of $28 billion in the first six months of the year.