BC Technology Group Ltd. in Hong Kong is reportedly considering the sale of its crypto platform, OSL, one of the city’s two exchanges licensed under recent digital-asset rules. Industry insiders reveal that BC Technology has explored interest from potential buyers, including industry players and funds, with a suggested valuation of HK$1 billion ($128 million), a report by Bloomberg said.
OSL’s offerings include prime brokerage, exchange, and custody services for crypto markets, along with infrastructure support for financial institutions entering virtual-asset trading. There’s speculation that BC Technology might opt to sell specific segments of OSL rather than the entire business.
While deliberations are ongoing, no guarantees exist that a deal will materialize, according to insiders. BC Technology responded to inquiries by emphasizing its status as a highly transparent and regulated company, refraining from commenting on market rumors.
Hong Kong introduced a digital-asset rulebook on June 1 to establish itself as a sector hub, enabling retail investors to trade larger tokens on licensed exchanges. However, weak crypto demand post-last year’s market downturn and the fallout from the unlicensed JPEX exchange scandal have posed challenges.
BC Technology’s interim report shows a narrowed net loss to HK$95 million in H1 2023 from over HK$300 million in the same period a year earlier. OSL’s digital assets and blockchain platform remain the primary income source. However, OSL’s digital-asset trading volume nearly halved to HK$112.6 billion in H1 2023 compared to the same period the previous year, the coverage said.
BC Technology’s market value has more than doubled to nearly HK$1.9 billion from a low in August this year, though shares remain 80% down from the record high in June 2021. OSL withdrew its Singapore digital-asset license application, planning a revised submission. HashKey Exchange is the only other platform with a Hong Kong crypto permit, and licensing processes may tighten following the JPEX scandal, where authorities allege defrauded investors of HK$1.6 billion.
