Hong Kong has approved the launch of its first crypto exchange, according to reports in the media.
The Securities and Futures Commission (SFC) has given its approval to OSL Digital Securities to begin offering cryptocurrency services in the region.
According to reports, OSL, which is backed by US-based investment giant Fidelity, applied for a licence earlier in November when Hong Kong amended its rules and regulations to allow crypto exchanges to operate in the country.
In a statement, OSL said that the move could see OSL become the world’s only publicly listed, licensed, insured and Big-4 audited digital asset platform.
Hugh Madden, chief executive officer BC Group, the operator of OSL told the media, “Securing approval-in-principle for a virtual asset trading platform license in Hong Kong, inclusive of security tokens, underscores our commitment to comprehensively addressing the demands of institutional investors.Until now, traditional finance has been observing this asset class with interest, but lack of regulatory clarity has so far discouraged participation.”
“Licensing is a game-changer, because it provides certainty and confidence to investors, unlocking massive participation as it drives the increasing use of our platform by the global institutional investor community.”
With regard to the licencing, OSL chief executive Wayne Trench told the media, ” Recent global regulatory developments, emerging sovereign digital currency trials and increasingly cashless societies, exemplify that digital assets are today’s reality and not some distant dream. Both Hong Kong and OSL are well-positioned as institutional participation continues to accelerate in the coming months and years.”