Hong Kong-based BC Technology Group Limited, the parent company of OSL, has dismissed reports suggesting a potential sale of the crypto exchange for HK$1 billion. Bloomberg's report on Monday claimed that BC Technology was considering selling OSL at a valuation of HK$1 billion, leading to a 22.1 percent drop in BC Technology's shares to HK$3.35 the following day. The board of BC Technology categorically denied the allegations, calling the article "factually inaccurate and highly misleading."

Regulatory Landscape in Hong Kong

OSL and HashKey are the only two platforms that secured crypto licences in Hong Kong under new regulations introduced in June, allowing them to serve retail customers. The application process for these licences reportedly costs between $12-$20 million.

BC Technology noted an uptick in client interest in OSL’s services following the recent closure of JPEX and subsequent arrests of unlicensed players in Hong Kong.

BC Technology Responds To Rumours and Share Price Decline

In response to the share price decline, BC Technology issued a clarification announcement on the unusual market behaviour. The company observed a drastic dip in its share prices, marking a daily decline of about 30% to HK$3 on October 17, 2023. The board emphasised that no considerations for the sale of OSL were being made and urged caution among shareholders and potential investors.

BC Technology's mid-year financial report showed a narrowing net loss of HK$95 million for the six months ending June 2023, significantly down from over HK$300 million during the same period in the previous year.

OSL's digital asset and blockchain platform operations remained the primary revenue source, despite a nearly 50% reduction in digital asset trading volume on OSL to HK$112.6 billion in the first half of 2023 compared to the same period in 2022.