15th November 2023 – (Hong Kong) BC Technology Group, the operator of Hong Kong’s publicly listed cryptocurrency exchange OSL, has announced a substantial investment from industry firm BGX. The partnership between BC Technology and BGX involves BGX subscribing to shares in BC Technology for an investment of approximately HK$710 million ($90.1 million), according to a joint announcement made on November 14.
The investment will be carried out through the subscription of new shares under a specific mandate, subject to approval from shareholders, as stated in the announcement.
Both BC Technology and BGX emphasize that this strategic investment reflects OSL’s commitment to establishing new standards in digital asset security, compliance, and technological innovation. OSL was one of the first cryptocurrency exchanges to obtain a crypto license in Hong Kong in 2023, as previously reported by Cointelegraph.
The news of the BGX partnership comes on the heels of BC Technology halting the trading of OSL shares on the Stock Exchange of Hong Kong. Unconfirmed reports have suggested that OSL may have been acquired by or received investment from Bitget, an exchange that officially announced its departure from the Hong Kong market on November 13, according to industry sources.
BC Technology has reportedly explored the possibility of selling the OSL exchange for HKD 1 billion ($128 million).
BGX, in the joint announcement, describes itself as a “crypto group that aims to offer an innovative platform that allows institutional and retail investors to seek investment opportunities in crypto.” It is unclear when the firm was founded. A snapshot of the BGX website from March 2021, taken by Wayback Machine, describes BGX as a “global digital currency exchange invested by SoftBank Investment.”
OSL and BGX have not provided further details regarding the strategic investment. Cointelegraph has reached out to BGX for comment but has not received an immediate response.