BC Technology Group, a prominent player within the cryptocurrency realm, is reportedly thinking about the sale of its virtual asset platform, OSL, with capacity valuations hovering around HK$1 billion ($128 million), in step with resources acquainted with the problem. The hypothesis has sparked interest from various capacity buyers, together with hooked up entities inside the cryptocurrency enterprise and funding funds, despite the fact that professional plans continue to be undisclosed.
This improvement coincided with a first-rate slump in BC Technology’s stocks, which plunged by way of up to 16.7% in Hong Kong’s early Tuesday buying and selling session, marking the steepest decline due to the fact June 12. This downturn observed the emergence of stories regarding the capacity sale.
Operating a complete platform, OSL presents a number services including prime brokerage, cryptocurrency trade, custody offerings, and infrastructure provisioning for economic institutions keen on virtual asset buying and selling. However, BC Technology is probably thinking about the sale of best segments of OSL, as opposed to the entire operation.
In reaction to inquiries, a representative of BC Technology emphasized the company’s commitment to transparency and regulation, declining to comment on what they described as market rumors and speculations.
The contemplation of sale comes at a time when the virtual asset market faces severa challenges. Despite Hong Kong introducing a new digital asset rulebook on June 1, aimed at organising the town as a cryptocurrency hub, the call for for crypto remains tepid following final year’s market downturn and next bankruptcies. The stringent rules, at the same time as fostering security, may additionally cause expanded operational prices.
Adding to the enterprise’s hurdles is the current scandal involving the unlicensed JPEX exchange, which has considerably impacted the nearby marketplace’s notion of digital belongings.
Despite those demanding situations, BC Technology said a reduction in net loss to HK$ninety five million for the primary half of the yr, down from HK$300 million within the equal length the preceding year. However, OSL’s virtual asset trading extent noticed a great lower, dropping to HK$112.6 billion, almost half of of what it became a yr ago.
While BC Technology’s market cost has recovered on the grounds that August, doubling to nearly HK$1.7 billion, it stays a miles cry from the highs visible within the crypto-fueled frenzy of June 2021.
Compounding matters, OSL recently retracted its application for a digital asset license in Singapore, with a revised submission predicted. Concurrently, a few clients in Singapore are being transitioned to the Hong Kong change.
As Hong Kong grapples with those troubles, the stringent licensing procedure, exemplified through the solitary fulfillment of HashKey Exchange in acquiring a permit, promises to be even more daunting within the aftermath of the JPEX scandal, doubtlessly reshaping the operational landscape for exchanges like OSL within the vicinity.
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