Hong Kong blockchain asset company BC Group raises USD 36 million

Hong Kong blockchain asset company BC Group raises USD 36 million

BC Group, a publicly-traded Hong Kong technology and digital asset company, today announced ​it has raised USD 36 million (HKD 280 million)​ in a share placement. This builds on the success of BC Group’s digital asset portfolio company, OSL, which it acquired in 2018. From the second half of 2018, OSL’s revenue increased 386% in the six months ending June 30, 2019.

OSL provides a full-service trading and infrastructure platform designed for professional and institutional clients. As one of the first to apply for a license under SFC’s new digital asset framework; OSL now has over 10 institutional client contracts from around the world.

Hong Kong

The Hong Kong Securities and Futures Commission’s (SFC) digital asset ​licensing framework, released on November  6, 2019, is well-suited to allow participation from the world’s largest regulated asset managers, retirement funds and other institutional investors.

“Digital asset market infrastructure is going through a rapid changing of the guard,” said BC Group CEO Hugh Madden. “Licensing frameworks in every major jurisdiction are rewarding only the strongest and most professional operators; these firms will continue to capture market share from unlicensed players.”

“The raise represents a new phase of growth for the Group,” continued Madden. “It allows us to further invest in key areas such as technology and compliance. Which will be essential as we compete and win in this dynamic environment.”

The SFC’s framework for digital asset trading platforms and broker-dealers for handling new and emerging digital assets builds upon existing regulations in place for securities and futures. This allows regulated asset managers to more easily invest in the asset class and paves the way for security tokens to enter the Hong Kong market once licensed players commence business.

“Asia is at the center of growth in digital assets and blockchain technology for innovation and adoption,” added Madden. “With its Hong Kong headquarters, global footprint and robust investor and client base, OSL is exceptionally positioned to be the world’s preeminent digital asset platform.”