- OSL has stated that it has applied to the Hong Kong SFC to update its current license to meet the new regulatory criteria.
- The license upgrade will allow OSL to offer retail investors virtual asset trading services while adhering to rigorous investor protection standards.
OSL, a Hong Kong digital asset platform, announced on its official website that it has applied to the Hong Kong Securities and Futures Commission (SFC) to upgrade its existing license in order to comply with the new regulatory requirements for retail transactions that will take effect on June 1, 2023.
The license upgrade will allow OSL to offer retail investors with virtual asset trading services while adhering to rigorous investor protection standards.
OSL has been an outspoken advocate of the SFC’s new regulatory framework for digital asset trading, which is a game-changing concept that sets a worldwide standard.
The license upgrade, according to the release, would enable OSL to offer virtual asset trading services to retail investors, subject to severe investor protection measures, in line with the SFC’s recently ended consultation on the regulation of virtual asset trading platforms.
Ken Lo, Deputy Chairman of BC Group, stated:
“This licensing uplift will allow us to extend our world-class digital asset platform to retail investors, providing them with greater access to the dynamic digital asset market.”
The new requirements include stringent steps for onboarding, governance, transparency, token due diligence, and client asset storage.
In accordance with these criteria, OSL will develop thorough rules and processes to safeguard retail investors. This involves expanding our secure and insured hot and cold wallet infrastructure for retail customer asset storage. To protect client assets even further, OSL will maintain a strict cold-to-hot storage ratio, guaranteeing that 98% of client assets are safely held in cold storage.
The SFC declared on May 23 that licensed Virtual Asset Service Providers (VASPs) would be able to serve retail investors as of June 1, and those willing to follow its criteria for safe asset custody, security standards, asset segregation, and other issues are invited to apply for a license.
OSL is one of the earliest organizations ready to respond to Hong Kong’s open rules on virtual assets.
On May 29, Hong Kong-based crypto exchange CoinEx announced the development of a local platform dubbed BitHK, which would submit its VASP licensing application to the securities regulator on June 1. On the same day, Huobi announced that its Hong Kong subsidiary began providing crypto trading to local retail traders. On May 29, the exchange filed its VASP application with the SFC.
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