Hong Kong Stock Exchange-listed BC Group, the operator of institution-focused digital assets trading platform OSL, reported a 737% increase in revenue in 2019. On March 31, BC Group revealed that its OSL digital assets platform had been its largest 2019 earner, accounting for 44% of the Group’s revenues — up from just 6% in 2018. The OSL digital assets platform offers institutions services that include over-the-counter brokerage, Software-as-a-Service tools, custodial services and institutional digital asset exchange. Regulatory progress Total year-on-year revenue for BC Group in 2019 was RMB72 million ($10 million) — up 737% from the previous year, as noted …

A memorandum published by the United States Department of Homeland Security (DHS) has named blockchain managers among the nation’s essential critical infrastructure workers. On March 19, the DHS’ Cybersecurity and Infrastructure Security Agency (CISA) published a memo emphasizing the special responsibility of workers within a critical infrastructure industry to maintain normal working schedules amid the intensifying coronavirus lockdown. Blockchain named alongside healthcare and pharma as critical infrastructure industries The document names blockchain managers alongside healthcare, pharmaceuticals, and food supply as critical infrastructure industries. The inclusion of blockchain managers on CISA’s list may indicate the DHS’s recognition of the potential for …

On Feb. 26, Hong Kong’s financial secretary Paul Chan stated that his administration will strengthen its Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) policies regarding cryptocurrencies. In his recent budget speech, Chan indicated that the amendments will address recommendations made by global financial watchdog, the Financial Action Task Force (FATF). New regulations to affect crypto exchanges, precious metals dealers The FATF assessed that Hong Kong was “largely compliant” with its AML/CTF guidelines following a September 2019 evaluation. The assessment saw Hong Kong become the first jurisdiction in the Asia-Pacific region to pass the FATF's appraisal. The proposed changes to Hong …

Binance, one of the world’s foremost cryptocurrency exchanges, now allows deposits in Hong Kong dollars. According to a Feb. 21 announcement, Binance now offers both deposits and withdrawals in Hong Kong dollars without deposit fees. After depositing Hong Kong dollars, users are free to spend them on cryptocurrency. Deposits are enabled through a partnership between Binance and payment processor Epay. Users can deposit with a swift code, wire transfer, SEPA, Fasapay, PM and other e-currency deposit and withdraw services. Binance is apparently trying to drive more liquidity into the cryptocurrency market. As Cointelegraph reported earlier this month, the exchange recently …

Fidelity International has acquired a stake in BC Group, the operator of OSL, one of Asia’s largest digital asset platforms for institutions. The company purchased 17 million shares for a 5.6% ownership position. The purchase was revealed by a Hong Kong Stock Exchange (HKEx) disclosure filed on Feb. 17. The actual transaction occurred on Feb. 12. Fidelity International is reported to have purchased HK$110.5 million ($14.2 million) worth of BC Group shares at a price of HK$6.50 ($0.83) each. The purchase is part of a $36 million share placement announced by BC Group in January. A related HKEx filing shows …

A number of cryptocurrency-related conferences across Asia are being delayed in response to the regional coronavirus outbreak. TOKEN2049, a major crypto event held annually in Hong Kong, is the latest one to postpone its conference. Originally scheduled for mid-March 2020, TOKEN2049 will now instead be taking place on October 7-8, 2020. The TOKEN2049 team announced: “Over the past weeks, we have been monitoring the global developments around the coronavirus closely. Whilst Hong Kong is managing the situation well and has taken strict precautions to contain any potential impact, uncertainty prevails.” Crypto firms in Hong Kong cease operations amid coronavirus and …

Hong Kong-based blockchain remittance startup Bitspark has abruptly announced its closure, citing internal restructuring issues. On Feb. 3, Bitspark co-founder and CEO George Harrap officially announced the platform’s plans to shut down its services on March 4, 2020. According to the statement, Bitspark users will be able to withdraw their cryptocurrencies from Feb. 3 to March 4 as the platform’s functionality will stay intact over the period. After March 4, account logins will be disabled for a period of 90 days, with users being able to withdraw their funds via Bitspark customer support, the announcement reads. Harrap emphasized that the …

Hong Kong and Thailand’s central banks have stepped closer to implementing a joint central bank digital currency (CBDC) for cross-border payments. On Jan. 22, the Hong Kong Monetary Authority (HKMA) and the Bank of Thailand (BOT) officially announced the outcomes of a joint CBDC research project called Project Inthanon-LionRock. Alongside publishing a joint press release, the banks have issued a detailed 90-page report providing an exhaustive analysis of the potential risks and benefits of CBDCs for real-time money transfers, liquidity management, regulatory compliance, and other aspects of finance. Inthanon-LionRock project was initiated in May 2019 After the HKMA and the …

The Hong Kong Institute of Bankers (HKIB) has onboarded six virtual banks as corporate members, according to a Jan. 2 press release. The HKIB is a non-profit institution that provides training and certification to the banking organizations in Hong Kong. The last banks joining the HKIB are Airstar Bank Limited, Fusion Bank Limited, Livi VB Limited, Ping An OneConnect Bank (Hong Kong) Limited, SC Digital Solutions Limited and WeLab Bank Limited. New era in Hong Kong’s banking sector Commenting on the news, Carrie Leung, CEO of the HKIB, said that the launching of virtual banks marked a new era in …

Digital asset manager IDEG is launching what it claims are Asia’s first Bitcoin (BTC) trusts. The two new funds — Asia Bitcoin Trust I and Atlas Mining Trust I — were officially announced in a press release on Dec. 8, confirming an earlier disclosure from the firm in Hong Kong in late November. Coinbase Custody will act as custodian for both trusts, with Asia-based Profound Trust Company acting as trustee. The combined size of the two trusts is $200 million. Bringing old money to a new sector The first of the two funds, Asia Bitcoin Trust I, is an actively …

The need for censorship-resistant currencies like Bitcoin (BTC) has been thrown, yet again, into stark relief as HSBC shutters an account reportedly used to fund Hong Kong protestors. As the Hong Kong Economic Journal reported on Nov. 18, the British multinational bank recently closed a corporate account that was reportedly being used to transfer crowdsourced funds to support protestors’ activities. HSBC says closure a matter of “regular review” Five months into the Hong Kong protests — now reaching an increasingly violent fever pitch — the bank presented its decision as a formal procedure, stating that it found the account was …

On Nov. 7, Ashley Alder, the CEO of the Securities and Futures Commission of Hong Kong, said at a conference that a new framework for crypto exchanges will be implemented. Almost immediately after the announcement, Reuters reported that a crypto exchange based in Hong Kong called OSL became the first to apply for a license with the SFC. While the introduction of a license for crypto exchanges by the government of Hong Kong is widely viewed as positive reinforcement for the growth of the crypto sector in Asia, some view it as a redundant solution that fails to facilitate the …