Written by Babywhale, Techub News
At the beginning of June, the application for compliant virtual asset exchange licenses in Hong Kong reached the deadline. The third licensed exchange that everyone had been looking forward to still did not appear, and the rejection of some strong applicants even sparked some discussion in the market.
As everyone is paying more attention to who will stand out, we interviewed HashKey Exchange and OSL, which have already obtained licenses, to talk about what they, as the only "twin stars", think of the development of Hong Kong's Web3 environment and supervision in this year.
Techub News: Compared to a year ago, what changes have Hong Kong regulators made in their regulatory requirements for licensed cryptocurrency exchanges?
Pan Zhiyong, Chairman and CEO of OSL Group: Over the past year, Hong Kong’s regulators have significantly strengthened their supervision of licensed cryptocurrency exchanges, especially in terms of anti-money laundering (AML) and fund security requirements. These changes are particularly important to investors as they are directly related to the security of their funds and the legality of their investments. As the first trading platform to be granted a license by the Hong Kong Securities and Futures Commission under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), OSL’s status not only demonstrates our leadership in the industry, but more importantly, it provides Investors are assured that our operations comply with the highest compliance standards.
For investors, choosing a trading platform that strictly complies with anti-money laundering regulations means two key aspects of protection:
Fund security: Strengthened anti-money laundering measures ensure that all transaction activities are strictly monitored, reducing the risk of funds being illegally misappropriated or involved in fraudulent activities;
Compliance and reputation: Investors can reduce legal risks caused by improper operation of the platform by trading on a compliant platform. In addition, a platform that complies with international anti-money laundering standards is more likely to gain the trust of global investors.
Therefore, the SFC's enhanced supervision in this area not only improves the overall health and transparency of the market, but also directly enhances investors' confidence in the market. Investors can invest more confidently in a compliant environment, which is crucial to promoting the long-term development of the cryptocurrency market.
Techub News: In the past year, how do you think Hong Kong's regulatory and support policies for Web3 have developed? What shortcomings are there?
OSL Group Chairman and CEO Pan Zhiyong: Over the past year, Hong Kong has made significant progress in Web3 and digital asset regulatory policies, especially in promoting and supporting the development of digital asset ETFs. Hong Kong has become the first market in the world to launch spot Bitcoin and Ethereum ETFs at the same time. This historic achievement not only marks Hong Kong's leading position in the global financial market, but also provides a successful regulatory and product promotion model for other markets around the world. OSL serves as the virtual asset custody and trading partner for the first batch of spot Bitcoin and Ethereum ETFs launched by China Asset Management (Hong Kong) and Harvest Global Investors (HGI), which not only brings new investment channels to investors, but also greatly enhances the depth and breadth of the market.
These achievements are extremely important to investors as they provide a safe and reliable way to invest in Bitcoin and Ethereum while ensuring regulatory integrity and transparency. However, despite Hong Kong's remarkable achievements in this regard, regulatory policies still need to be further strengthened in terms of adaptability to emerging technologies. In the future, Hong Kong needs to continue to optimize these policies to ensure that it can better cope with the rapidly changing digital asset environment while protecting investor interests and promoting the healthy development of the market.
Techub News: There will continue to be new licensed cryptocurrency exchanges in the future. How do you view the competition and cooperation between different exchanges?
OSL Group Chairman and CEO Pan Zhiyong: In the future, more licensed cryptocurrency exchanges will enter the market, which will promote the improvement of industry service quality and technological innovation. OSL believes that although the market competition is fierce, cooperation between exchanges is equally important, especially in terms of security, compliance and market education. Cooperation can help form a healthy market environment. By sharing best practices and jointly addressing regulatory challenges, all parties can jointly promote the sound development of the entire industry.
Techub News: After operating the cryptocurrency exchange for a year, are there any milestones or meaningful data that you can share with us?
OSL Group Chairman and CEO Pan Zhiyong: Over the past year, OSL's achievements are not only reflected in our business growth, but also in our increased influence in the global financial market. One of the most iconic achievements is the inclusion of OSL Group in the MSCI Hong Kong Index, which is a recognition by the financial market of our role as a leading digital asset platform. This event not only increased OSL's visibility among international investors, but also marked the beginning of mainstream financial indexes recognizing and including digital asset-related stocks, reflecting the growing importance of digital assets as an investment category in the global capital market.
This adjustment of the MSCI Hong Kong Index shows the positive evaluation and expectations of the digital asset industry by global index providers, which is a great boost to the entire industry. It not only brings wider exposure and investment to OSL, but also provides a model for other companies active in the digital asset field to enter the global mainstream financial market.
