FTX’s liquidity crisis and the news that Binance is seeking to acquire the firm has shaken digital asset markets.
A significant number of institutions, family offices and other professional trading participants are unable to trade on many of the incumbent large scale platforms due to regulatory, risk, security and compliance concerns. Some investors are transferring funds to regulated exchanges.
As a result of its market-leading standards for regulatory compliance, the OSL platform has experienced significant uptake and increased volumes from institutional and professional investors over the past several months – this has further intensified in the last 48 hours as the news around FTX continues to develop. In the last 24 hours in particular, the OSL platform has seen large increases in trading volumes, as well as a surge in inquiries from existing and potential customers. Furthermore, OSL has zero exposure to FTX or Alameda.
Institutions trust OSL in times like these because the firm was built from day one with regulatory compliance woven into its DNA. As the only firm licensed by Hong Kong’s Securities and Futures Commission (SFC) for Type 1 and 7 regulated activities related to digital assets, OSL’s fiduciary and compliance standards are consistent with those currently available for traditional asset classes – OSL has never lost any client funds in its history.
Under the SFC license, OSL is one the few operators in the world with regulated client asset segregation, a normal practice in traditional markets and the future trend for regulated operators globally. OSL parent BC Group is listed on the Hong Kong Stock Exchange and is audited by a ‘Big-Four’ firm, with transparent and publicly available financials.
The digital asset industry has enormous promise and potential – however, for it to be sustainable and to ultimately thrive as part of the global financial services ecosystem, incumbents will need to change how they operate to include more robust regulatory compliance and risk management.
It is also imperative the crypto industry works directly with regulators to create more clarity around digital assets. Regulation, resilience and adoption are the key trends in the digital asset industry – and more regulation and government support is a positive as it leads to fair competition and protects consumers, a key element of a healthy market. OSL is firmly committed to working with regulators to ensure a level playing field and a robust global digital asset ecosystem.
While the news surrounding FTX is causing short-term tremors, in the longer term, the digital asset industry still has an incredible opportunity to build a better future for financial services. OSL is now even more committed to its mission to drive the next generation of capital markets with digital assets, setting standards for performance, security and compliance.