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Crypto and digital asset companies · Hong Kong

BC Technology Group

bc.group ↗

Hong Kong-listed crypto exchange, custody and payments group formerly BC Technology, now branded OSL.

Losing its protection
Assessed 30 July 2026 · Evidence as of 30 July 2026
The structural protection is eroding.
On the recordSince 30 July 2026 · Checkable from H2 2026 · Every call on the record Checkpoint: H1 2026 interim results, showing whether the FY2025 net loss narrows
The call

OSL holds a real Hong Kong license advantage but faces a licensed rival with more custody assets and banks issuing their own stablecoins, while its own numbers just swung to a loss.

BC Technology Group runs OSL, a licensed cryptocurrency trading and custody business in Hong Kong. The company holds rare government permits that most global banks cannot quickly obtain, and it holds about HK$5.55 billion in customer assets under insurance. However, this advantage is not unique: a rival called HashKey has the same licenses plus more customer money, and major banks like Standard Chartered and HSBC have already launched their own Hong Kong dollar stablecoins, pushing OSL into a smaller supporting role rather than a leadership position. The company swung to a heavy loss of HK$370 to HK$430 million in the latest year despite record revenue, so profitability remains unproven. The biggest question is whether China's central bank will tighten rules around Hong Kong stablecoins, and whether the company can stop losing money in the next few months.

Why
01
AI pressure: None apparent. AI speeds up KYC, execution and quotation workflows internally but cannot replicate OSL's SFC licenses or custody insurance. Could AI do the core job? Unlikely.
02
Bigger players: Standard Chartered Bank, HSBC (HKDAP and PayMe-linked HK dollar stablecoins). Banks already issue HK dollar stablecoins directly, pushing OSL toward a distributor role in its own growth market. Could a giant copy it? Probably.
03
What protects it. SFC Type 1/4/7/9 licenses, Big-Four audit and roughly HK$5.55bn insured custody keep most global platforms out of Hong Kong's regime.
What would change this call
OSL's H1 2026 interim results show whether the HK$370-430M FY2025 net loss narrows or widens. Indicates if reinvestment is converting to profit or if losses are structural.
HSBC or Standard Chartered launch stablecoin distribution bypassing licensed VATPs like OSL. Would show banks disintermediating OSL's distributor role in HK dollar stablecoins.
HashKey's custody assets or licensed trading volume in HK reported to keep exceeding OSL's. Would confirm OSL is losing ground to a same-license rival, not just banks.
Key numbers
  • FY2024 IFRS income HK$374.7m, up 78.6% YoY (2024-12-31)
  • 1H2025 revenue HK$195.4m, up 57.9% YoY (2025-06-30)
  • OSL Pay made HK$55.9m, 28.6% of 1H2025 revenue (2025-06-30)
Named risks
  • FY2025 net loss of HK$370-430 million despite record revenue, profitability unproven. Severity: high
  • Mainland China regulatory crackdown on stablecoins moved OSL and HashKey share prices in May 2026. Severity: high
  • OSL relegated to distributor as banks and HashKey control stablecoin issuance and custody infrastructure. Severity: medium
  • Integration risk from Banxa (closed Jan 2026) and OSL Japan acquisitions could surface cost or compliance issues. Severity: medium
  • New revenue lines (OSL Pay, USDGO stablecoin) are unproven and could stall. Severity: low
Rivals, as read in July 2026
RivalDirectionEvidence
HashKey GroupcontestingHashKey custody >HK$12bn vs OSL's HK$5.55bn as of 2025-06-30, both hold identical SFC licenses
Standard Chartered / HSBClosing toBanks issue own HKD stablecoins (HKDAP, PayMe-linked), reducing OSL to distributor role by 2026-07-20
HashKey Grouplosing toHashKey omnibus service used by ~90% of licensed HK brokers per 2026-07-29 report
Questions people ask
Is BC Technology Group in financial trouble?
OSL's FY2025 revenue grew 30.4% year over year to HK$489 million, but the company still posted a net loss of about HK$386.8 million for the year ended December 31, 2025. It has completed two dilutive equity raises in eight months, including a US$300 million raise on July 25, 2025, and its market cap fell roughly 24% from HK$13.51 billion at year-end 2025 to about HK$10.28 billion as of July 17, 2026.
What is the biggest risk to BC Technology Group?
The biggest risk is that OSL's Hong Kong exchange licenses block small unlicensed entrants but do nothing to stop larger, already-listed licensed rivals like HashKey Group or global payment networks. Visa and Mastercard shipped agent-to-agent stablecoin settlement rails in June 2026, moving directly into the enterprise payments space OSL is trying to grow, and a third licensed rival, HKVAX, is also contesting the same retail market.
Who are BC Technology Group's biggest competitors?
In Hong Kong's licensed retail exchange space, OSL trails HashKey Group, a larger, already-listed rival with the same licenses. HKVAX is a third licensed contender in that same retail market, while Circle, Stripe, BVNK and Zero Hash compete for OSL's BizPay enterprise stablecoin business, and Visa and Mastercard are moving into stablecoin settlement rails that overlap with OSL's payments push.
Is BC Technology Group at risk from AI?
The main threat is not AI models directly but AI-agent stablecoin settlement rails, which Visa and Mastercard shipped in June 2026 and which land right in OSL's stated 2026 enterprise payments push, directly overlapping with OSL's BizPay enterprise stablecoin business.
Can a bigger company just copy what BC Technology Group does?
Yes. HashKey Group already holds the same Hong Kong SFC retail licenses, is reportedly bigger in scale, and is already listed, so it competes head to head for the same exchange customers without needing to build new licensing infrastructure.
What should I watch to see if BC Technology Group is turning around?
Two dated checkpoints matter: whether OSL Group reports another net loss in its interim 2026 results due by August 28, 2026, and whether it conducts another dilutive equity raise or share placing before the end of 2026. The August 28, 2026 report will also show whether revenue growth from OSL Pay, BizPay, and USDGO is narrowing losses or if dilution is accelerating instead.
Timeline
  • 2026-07-29OSL becomes first SFC-licensed HK exchange to offer retail XRP trading
  • 2026-06-16OSL secures Australian Financial Services Licence (AFSL)
  • 2026-03-31FY2025 results announced: record revenue but guided HK$370-430M net loss
  • 2026-01-01OSL completes take-private acquisition of Banxa Holdings for C$80.4M
  • 2025-10-02OSL completes share subscription of 47,518,000 shares at HK$14.90 each
  • 2025-04-01OSL Pay on/off-ramp payments product launched
  • 2025-01-31OSL completes phased acquisition of 81.38% of OSL Japan
  • 2024-01-24BC Technology Group formally renamed to OSL Group Limited
  • 2023-11-15BGX invests ~HK$710 million for ~30% stake in OSL Group
  • 2020-12-15OSL becomes world's first SFC-licensed digital-asset trading platform
Head to head
BC Technology Group vs HashKey Group
Revision history
30 July 2026
First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.
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