Hong Kong’s Crypto Exchange OSL Acquires Canada’s Banxa

Hong Kong crypto custodian OSL Group announced that it has acquired the Canadian-based crypto infrastructure provider Banxa for approximately $62.5 million. Following the announcement of the acquisition, OSL’s stock, HKG: 0863, soared by over 10%. At the time of writing, the stock sold for 15.38, representing a 9.7% uptick in the past 24 hours.

OSL Acquires Banxa

Banxa bridges traditional finance and crypto by enabling fiat-to-crypto conversions and vice versa. It serves global crypto exchanges, wallets, and Web3 dApps, offering access to over 150 countries. Its services include fiat-to-NFT checkout and a developer toolkit with KYC, payments, and compliance features. With licenses in major jurisdictions, including the United States, Australia, Canada, Lithuania, the Netherlands, and the United Kingdom, Banxa’s regulatory footprint is its key competitive advantage.

The Banxa acquisition, unanimously approved by Banxa’s board, aims to enhance OSL’s enterprise-level crypto payment system. It plans to expand its presence in diverse markets. This strategic move aligns with OSL’s growth strategy in the crypto payments space. The company’s growth further capitalizes on regulated acquisitions within the digital assets industry.

In a recent interview, OSL’s chief finance officer, Ivan Wong, said:

“We will continue global expansion through both acquisitions and license applications.”

According to Wong, the company plans to issue stablecoins globally, following recent expansions in Australia, Japan, and Europe, where it secured an exchange license and completed acquisitions. The firm is set to finalize an acquisition in Indonesia next month. It also plans to pursue crypto licenses in three regions this year.

The crypto exchange aims to expand its global presence to dominate cross-border payments, with plans to issue stablecoins pegged to fiat currencies. With Hong Kong introducing a licensing framework for stablecoin issuers, the company is well-positioned to capitalize on this opportunity. This strategic move aligns with OSL’s ambition to become a major player in the digital asset industry, enhancing its market presence and offerings.

Hong Kong and Crypto

OSL’s efforts to expand its business do not indicate that Hong Kong is not crypto-friendly. In reality, Hong Kong has shown a favorable stance on regulations for the crypto ecosystem.

The government is also exploring ways to regulate the use of cryptocurrencies while boosting adoption. A recent report revealed that Hong Kong requires stablecoin issuers to obtain a license from the Hong Kong Monetary Authority, with rules for reserve management, staking, redemptions, and risk protection to safeguard investors.

The post Hong Kong’s Crypto Exchange OSL Acquires Canada’s Banxa appeared first on Cointab.