Fidelity International, a branch of U.S. based financial services provider Fidelity Investments, revealed it had invested $14M in the Hong Kong-based crypto exchange OSL.
According to public disclosures released on February 21, 2020, Fidelity International bought 17 million shares of OSL owner BC Group at a price of HK$6.50 (US$0.83) per share, which brings it a 5.6 percent stake in the firm.
One other main investor that participated in the investment is Eternity Funding Limited, a Hong Kong-based funding holding agency mainly trading in jewelry merchandise.
As a major cryptocurrency exchange in Asia, OSL targets institutional and individual investors who wish to buy and sell crypto.
BC Group’s CEO Hugh Madden stated:
“We’re excited to see that world-class fairness traders are more and more taking part within the fast-growing digital asset sector, and we stay up for reaching new milestones with our industry-leading institutional traders.”
According to Fidelity International disclosures from June of last year, the financial services provider was managing total client assets of $418.8 billion across Asia, Europe, the Middle East, and South America.
OSL Leaps on New Hong Kong Crypto Rules
Hong Kong hosts dozens of cryptocurrency exchanges, including some of the world’s largest, and the Securities & Futures Commission (SFC) published new rules in November 2019, among the first of their kind, that allowed exchanges to opt into regulation.
Many in the crypto space predicted that few exchanges would comply, but OSL confirmed it would be the first to apply for a digital asset exchange license from the SFC.
The new rules lay down guidelines on how a licensed exchange should provide services to professional investors only and provide insurance to protect clients in case digital assets are lost or embezzled by hackers. The rules also require exchanges to carry out due diligence into the cryptocurrencies traded on their platform.
The move by OSL to embrace crypto licensing proves that they are keen to enhance their reputation and credibility among crypto traders in the city. In fact, OSL CEO Wayne Trench congratulated the SFC for the new guidelines stressing that they will help in streamlining the industry.
More Good News For OSL
In the wake of a major investment boost by Fidelity securities, OSL recently announced that Matt Long, who was previously the Danish bank’s Hong Kong CEO, will lead OSL’s distribution undertakings as well as its prime brokerage business.
The move will likely steer OSL exchange forward as it looks to boost institutional interest in the digital asset class.