According to sources from Bloomberg, BC Technology Group, the parent company of the OSL crypto exchange, is currently evaluating potential buyers, including industry insiders and investment funds, for the sale of its platform. The negotiated price for this prospective sale is rumored to be around 1 billion HKD, equivalent to 128 million USD. While it is not yet certain whether BC Technology will sell the entire OSL platform or specific parts of it, discussions are still ongoing, and no official announcement has been made regarding the sale’s outcome. Additionally, information about the potential buyers remains undisclosed.
Representatives from BC Technology declined to provide further comments to the media, stating, “We are a highly transparent and tightly managed company. We will not comment on market rumors and speculation.”
Hong Kong’s BC Technology Group is exploring the sale of its crypto platform OSL https://t.co/YiAnJBPqJB
— Bloomberg Crypto (@crypto) October 16, 2023
OSL is a cryptocurrency trading and custodial platform based in Hong Kong, and alongside HashKey, it became one of the two crypto exchanges licensed in August 2023. It is worth noting that the licensing process was a costly one, with the company reportedly shelling out between 12 to 20 million USD in licensing fees.
OSL has recently withdrawn its license application in Singapore and is planning to submit amendments, with some of its Singapore-based customers being redirected to the Hong Kong platform.
Financial reports from BC Technology indicate that OSL serves as a primary source of revenue for the group. In the first six months of 2023, the trading volume of cryptocurrencies on OSL plummeted by almost half to 112.6 billion HKD compared to the same period last year. This significant decrease in trading volume suggests that declining revenues have prompted the company to explore the possibility of a sale.
On the flip side, BC Technology’s financial picture shows some signs of improvement. The company has managed to reduce its losses from 300 million HKD to 90 million HKD over the reference period of the first six months of the year.
The possible sale of OSL comes in the wake of shifting dynamics within the cryptocurrency industry, as regulatory developments and market conditions continue to evolve. BC Technology’s decision to consider a sale demonstrates the fluid and competitive nature of the crypto space, where companies must adapt to an ever-changing landscape.
Read more:
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- JPEX Restricts Withdrawals, Converts User Balances To Non-Withdrawable Cryptocurrency: SCMP