Local crypto firms in talks with Hong Kong’s SFC on crypto staking

Hong Kong’s OSL crypto exchange receives $91M boostBC Technology Group, the owner of the licensed OSL exchange, has secured a HK$710 million ($90.9 million) investment from BGX.Photo by Precondo CA on UnsplashBringing clarity to BitgetX market withdrawalBGX is reportedly associated with Seychelles-incorporated crypto exchange Bitget. The investment, which was announced via statements published by both BC Technology Group and BGX on their respective websites on Tuesday, brings further clarity to the rationale behind Bitget’s recent decision to withdraw its BitgetX platform from the Hong Kong market.BitgetX was believed to be working towards crypto licensing in Hong Kong. Its decision on Monday to stop pursuing a virtual asset trading platform (VATP) license and withdraw from the market entirely had been perceived as a weakness of the regulatory regimen in Hong Kong. However, it now appears that it was just clearing the way for involvement in crypto trading brought about through its investment in OSL, an entity that has already acquired a trading license within the Chinese autonomous territory.BGX has entered into an agreement to acquire a 29.97% stake in BC Technology, OSL's parent company, pending shareholder approval. According to an announcement, BGX CEO Patrick Pan Zhiyong is set to become one of two new executive directors as part of this investment. Pan, concurrently serving as the CEO of BitgetX, will also oversee the transition as Bitget steps back from the market, scheduling its platform closure for Dec. 13.Sale rumors deniedReports emerged in October that BC Technology Group was considering the sale of OSL based on a $128 million valuation. Contrary to those reports, BC Technology vehemently denied any intentions to sell OSL, emphasizing its commitment to maintaining the exchange’s operations. The company dismissed such speculation as “factually inaccurate and highly misleading,” underscoring its dedication to navigating the evolving crypto landscape.Bitget, responding to inquiries from the South China Morning Post (SCMP), asserted its independence from BGX, stating that it is “an independent entity” with no legal or commercial connections to the crypto firm.BGX is incorporated in the Cayman Islands and wholly owned by Liu Shuai, the founder of Shenzhen Qianhai Junchuang Fund Management and Singaporean crypto fund Foresight Ventures. Liu’s investment portfolio includes Bitget, as well as U.S. crypto media group The Block, which was acquired by Foresight Ventures, according to reports earlier this week.The incorporation of BGX into BC Technology’s ecosystem introduces a dynamic player with diverse investments across the crypto space. Against the backdrop of Hong Kong’s changing regulatory landscape, with the introduction of a mandatory licensing scheme last year, BC Technology’s OSL was the first exchange to obtain a voluntary license from the Securities and Futures Commission (SFC) in 2020. The asset management division of the company received a trading license in May of this year. In August, OSL, along with HashKey, received approval from the SFC to upgrade their licenses, allowing them to serve retail investors.The evolving regulatory environment reflects Hong Kong’s ambition to position itself as a crypto hub, attracting both institutional and retail participants. While that endeavor is not without its challenges, the city hasn’t been adversely affected by BitgetX's withdrawal from the market, given this related investment in OSL.

Leading Chinese gaming company lines up $100M crypto investmentAs yet another indicator of the rising trend of institutional crypto investments, China’s premier board and card game company, Boyaa Interactive, has unveiled plans to invest up to $100 million in cryptocurrency assets, with a focus on Bitcoin (BTC) and Ethereum (ETH).News of Boyaa’s plans emerged following a disclosure from the Hong Kong Exchanges and Clearing Limited, which stated that the company will distribute notices regarding its crypto investment plans during an extraordinary general meeting (EGM). The relevant details are expected to have been supplied to shareholders on or before Nov. 30. The company has emphasized its intention to ensure transparency while adhering to listing rules throughout this process.Photo by Traxer on UnsplashDigital asset acquisition over a 12-month periodThe decision to delve into the world of cryptocurrencies aligns with Boyaa Interactive’s commitment to strengthening its presence in the evolving Web3 landscape, as highlighted by the company’s board of directors. The proposal outlines a comprehensive strategy to acquire the assets over a 12-month period, pending approval at the upcoming EGM.The planned acquisition involves allocating approximately $90 million equally between Ethereum and Bitcoin. The remaining $10 million is earmarked for stablecoins Tether (USDT) and USD Coin (USDC). Boyaa Interactive asserts that the actual acquisitions will depend on open market conditions, with a commitment not to pay premiums exceeding 10% of prevailing market prices. Funding for this initiative will be sourced from the company’s existing cash reserves.The board will play a crucial role in determining the specific cryptocurrencies to acquire, their allocation ratios and the optimal timing for purchase. The emphasis is on prudent risk management, aligning with Boyaa’s business development strategies.Diversification strategyThe company justifies its choice of Bitcoin and Ethereum by citing their alignment with its long-term development goals. In the document, Boyaa Interactive highlights the importance of investing in cryptocurrencies with robust market liquidity and substantial market values. Bitcoin, Ethereum, USDC, and USDT, chosen for their high market liquidity, align seamlessly with Boyaa’s strategic vision.In its stock exchange filing, it justifies these plans on the basis of a desire to diversify its holdings. The document reads:”[The] purchase of cryptocurrencies is also an important arrangement for the Group’s asset allocation, as allocating part of the Group’s idle reserve funds in cryptocurrencies can serve as a diversification to holding cash in treasury management, and a measure to balance investment risks and returns.”Growing asset acceptanceThe move into the cryptocurrency market comes at a time when institutional investors are increasingly flocking to major assets like BTC and ETH. Reports indicate significant inflows of institutional funds into these cryptocurrencies, setting the stage for what appears to be an extended bull market.Boyaa first showed an interest in holding crypto on its balance sheet back in August when it proposed allocating $5 million towards cryptocurrency investment. The company following up with a $100 million investment serves as a testament to the growing acceptance and integration of cryptocurrencies within mainstream business strategies.

Dunamu Distributes 4,100 NFTs for Climate Change CampaignDunamu, the operator of the South Korean cryptocurrency exchange Upbit, announced that it has distributed 4,100 non-fungible tokens (NFTs) from the Climate-sensitive Biological Indicator Species (CBIS) list in collaboration with four agencies under the Ministry of Environment — the National Institute of Biological Resources, the Nakdonggang National Institute of Biological Resources, the Honam National Institute of Biological Resources, and the National Institute of Ecology. This comes as part of efforts to raise awareness about the importance of biodiversity and habitat protection amid the threat of climate change.Photo by Yiju Cheng on UnsplashThemed NFTs for conservationThe CBIS list outlines species whose seasonal activities, habitat area, and population size are susceptible to being impacted by climate change, thus requiring continuous observation and management by the government.Dunamu, along with the four environmental institutions, minted NFTs representing 15 different species from the list — such as the white eye bird and the camellia tree — to distribute to participants of their Resource Circulation Climate Action Campaign.The latest round of NFT distributions was carried out in collaboration with the Honam National Institute of Biological Resources from May 19 to August 11. It is the first of four to be carried out over the course of the year following their initial announcement to do so in May.Empowering climate action beyond boundariesParticipants showed a positive reaction to the utilization of emerging technologies such as NFTs and the metaverse, which enabled them to contribute to climate change efforts without the limits posed by time and space. By organizing fun missions within the metaverse and gifting NFTs to participants, Dunamu and the environmental agencies were able to highlight the severity of the climate crisis while simultaneously making the concept of resource circulation more accessible and easier to understand. Dunamu reported that during the three-month period of the first campaign, the designated campaign space within Dunamu’s metaverse platform, 2ndblock, also racked up a cumulative visitor count of 73,000 users.The second campaign has also commenced and is running from now until October 2. This time around, Dunamu is working with the Nakdonggang National Institute of Biological Resources to issue 1,000 NFTs of four species: the tree frog, barn swallow, kumgang minnow, and little egret. Noteworthy artists will also contribute to creating the NFTs, including those from the Botanical Artist Society of Korea.In order to partake in the campaign, participants must complete the stamp-collecting mission in the campaign space on 2ndblock. Lucky participants who are chosen to receive NFTs must register their issued gift code on Upbit’s NFT marketplace.“As a result of our deliberation on ways to contribute to the environment and society with our technology and resources, many people have shown interest in our online and in-person climate efforts,” said Lee Sirgoo, CEO of Dunamu. He also expressed hopes for continued participation and support for the remaining NFT distributions and campaigns to promote environmental protection and biodiversity conservation.This collaboration between the private and public sectors which combines online and in-person activities stands out as an innovative method for combatting climate change.