- Cryptocurrency exchange OSL reportedly weighs platform sales at HK$1 billion.
- The exchange was one of the first two officially licensed exchanges in Hong Kong.
- The platform has reportedly withdrawn its digital license application from Singapore.
Hong Kong-based cryptocurrency exchange OSL is reportedly exploring the possibility of a sale, with a valuation set at HK $1 billion, equivalent to US$128 million.
The development follows its recognition in August as one of the first two exchanges to become a fully licensed entity in Hong Kong, raising speculations of a troubled market situation within the region.
Is OSL Folding Up?
According to a Bloomberg report on October 16th, OSL’s parent company, BC Technology Group, is actively soliciting interest from potential buyers for its digital asset platform.
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The exchange allegedly operates at a loss as its profitability has remained elusive for an extended period despite its range of services, including prime brokerage, exchange operations, and infrastructure support to financial institutions engaged in virtual asset trading.
OSL’s underperformance as BC Group’s main income contributor has allegedly impacted the company’s market value, with an 80% decline from its peak during the crypto bubble era in June 2021.
The unexpected turn of events coincides with Hong Kong’s recent industry troubles involving the controversial crypto exchange JPEX, which defrauded over 1,641 local investors of a combined HK$1.19 billion (US$152.2 million). The report added at deliberations is ongoing, and there is no official confirmation from BC Technology Group or OSL.
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OSL has also reportedly withdrawn its application for a digital asset platform license in Singapore.
Read more on crypto expansion in Asia:
Upbit Wins Preliminary Approval For MPI-License In Singapore
To dive deeper into the JPEX exchange scandal, read here:
JPEX Exchange Shuts Down Operations as SFC Probe Escalates
