The first licensed cryptocurrency exchange in Hong Kong, OSL, is on the market for sale, with the company valued at approximately 128 million dollars. Due to its prolonged inability to make a profit, the exchange is believed to have been unable to overcome financial difficulties.
In June, under new regulations aimed at promoting digital asset trading in Hong Kong, BC Technology Group Ltd. is holding discussions with potential buyers for the sale of OSL.
As reported by Bloomberg, sources indicate that BC Technology might decide to sell only a portion of OSL rather than the entire business.
A Decrease in Net Losses
OSL offers a versatile platform for cryptocurrency markets. It stands out with services such as brokerage, clearing, custody services, and providing infrastructure for virtual asset trading to financial institutions. According to BC Technology’s first-half data, the company’s net loss decreased from last year’s 300 million to 95 million HK$. However, OSL’s digital asset trading volume also fell by half compared to last year, dropping to 112.6 billion HK$. The company’s shares are down 80% since the pandemic.
The report mentions that OSL’s digital assets and blockchain platform business is the main revenue source for BC Technology.
Weak demand for crypto in Hong Kong and strict regulations are leading to high costs in the sector. However, despite trying to sell OSL, BC Technology’s market value showed a significant increase in August this year, reaching almost 1.9 billion HK$.