OSL leaps on new Hong Kong rules with crypto exchange licence bid

HONG KONG: Hong Kong-based OSL, part of BC Group, said on Thursday it had become the first cryptocurrency firm to apply for a digital asset exchange licence from the Securities & Futures Commission (SFC).

Hong Kong hosts dozens of cryptocurrency exchanges, including some of the world’s largest, and the SFC on Wednesday published new rules, among the first of their kind, that allow exchanges to opt into regulation. Market participants said few others are expected to follow OSL’s lead, however.

Market watchdogs worldwide have been debating whether and how they should regulate the cryptocurrency industry, with many chosing initially to focus on investor protection concerns.

The new rules stipulate, among other requirements, that a licenced exchange must provide services to professional investors only, have an insurance policy to protect clients in case assets are lost or stolen, and carry out due diligence into the cryptocurrencies…