Dunamu Loses Lawsuit Seeking $19M in Corporate Tax Refunds After Venture Status Removal

OSL Parent Company Denies Sale PlansBC Technology Group, a Hong Kong-based investment holding company, has firmly denied recent reports suggesting it is exploring the sale of its licensed digital asset business, OSL, for up to HK$1 billion (US$137.3 million).Photo by Nextvoyage on PexelsCompany stock plummetsThis comes in response to a report that emerged via Bloomberg on Monday. The news of the possible sale had a significant impact on the company’s stock, which plummeted by over 22% to HK$3.35 the following day.BC Technology Group, which has been listed on the Hong Kong stock exchange since 2012, is the parent company of OSL. The reports hinted at the possibility of selling off parts of the business, citing undisclosed sources.In response to these rumors, BC Technology Group issued a formal statement to clarify the situation, deeming the article “factually inaccurate and highly misleading.” It vehemently refuted any intention to sell OSL, a key player in the cryptocurrency exchange sector.First licensed exchangeOSL was the first cryptocurrency exchange to be licensed by the Securities and Futures Commission (SFC) in Hong Kong in 2020, initially operated under a voluntary scheme and was limited to serving professional investors. However, the recent licensing requirement broadened its scope, allowing it to cater to retail investors as well, including popular cryptocurrencies like Bitcoin and Ethereum.Both OSL and HashKey had their licenses upgraded this year, enabling them to serve retail investors as per the new policy. However, the reception to this new regulatory framework has been somewhat lukewarm, with only five local exchanges applying for the new virtual asset trading platform (VATP) license. The SFC had to publish a list of applicants following a financial scandal involving the JPEX crypto exchange, which led to over 2,500 complaints and losses totaling approximately HK$1.5 billion.The backdrop of this unfolding situation is Hong Kong’s efforts to establish itself as a significant virtual asset hub. The city announced its ambition to transform into a hub for digital assets a year ago, drawing considerable attention from cryptocurrency exchanges. These efforts included implementing new regulations in June that mandated licensing for cryptocurrency exchanges.Several companies with connections to Hong Kong and mainland China have expressed their intent to obtain a license, potentially taking advantage of Hong Kong’s favorable stance toward virtual assets when compared to mainland China’s strict regulations.High compliance costsNonetheless, high compliance costs in Hong Kong continue to pose a barrier, potentially preventing the city from becoming the primary base of operations for crypto businesses. Industry insiders estimate that the cost of compliance from start to finish can be as high as HK$60 million for a company. Firms have reported that obtaining a trading license in Hong Kong can involve an outlay of between HK$20 million and HK$200 million.As per BC Technology Group’s mid-year report, the company reported a net loss of HK$94.7 million in the first half of 2023. This marked a notable improvement compared to the HK$312.1 million in losses during the same period the previous year. OSL remains a significant source of income for the company.

Upbit Operator Dunamu Assists Indebted Youths in Rebuilding Credit ScoresDunamu, the operator of South Korean cryptocurrency exchange Upbit, has announced an initiative aimed at helping indebted youths rebuild their credit scores. The company will accept applications from July 19 through August 20. Eligible individuals must be residents of Seoul, Gyeonggi-do, or Incheon, aged between 19 and 39, and have successfully completed debt workout arrangements.Photo by Towfiqu barbhuiya on UnsplashGiving backThe project, called Dunamu Next Dream, is part of the company’s efforts to give back to the community by using revenue generated from Luna Classic (LUNC) transaction fees. In September of last year, Dunamu committed to allocating the LUNC transaction fee profits of 239.13025970 BTC to investor protection. After consulting with an external advisory committee, the exchange operator decided to donate around 3 billion KRW ($2.3 million) to public organizations and utilize the remaining funds to provide financial and credit support.To implement the Dunamu Next Dream project, Dunamu entered into a memorandum of understanding (MOU) with the Credit Counseling and Recovery Service (CCRS) and the Social Solidarity Bank (SSB) in April.Two componentsThe project consists of two main components: financial consulting and emergency loans. The initial focus will be on financial consulting, which includes support for living expenses. The aim is to assist indebted youths in developing healthier financial habits. Financial experts will provide six sessions of financial consulting, addressing their recurring indebtedness and fostering financial independence. Additionally, each individual will be granted a living expense of 1.2 million KRW ($950) to ensure they can meet timely interest payments.Dunamu will collaborate with the CCRS and the SSB to conduct a comprehensive review of applicants and select 150 deserving beneficiaries. The selection process will involve thorough evaluation through paper screening and interviews, allowing applicants to demonstrate their dedication and financial responsibility.The second component of the project, emergency lending, will launch in September. It aims to provide interest-free loans of up to 2.5 million KRW to individuals facing immediate needs, such as medical fees.Dunamu CEO Lee Sirgoo highlighted the importance of this project, emphasizing the challenges faced by young people who are the future leaders of society. The economic struggles they encounter can have significant repercussions for society as a whole. Accumulating debts has made it difficult for young individuals to achieve financial stability and advance their careers. Lee stressed the need for public awareness regarding this issue, as it is crucial for young people to establish themselves promptly within society.

Bitget Adopts Stricter KYC Measures in Line with Global RegulationsBitget, the cryptocurrency derivatives exchange registered in Seychelles, has announced a significant update to its Know Your Customer (KYC) requirements.Announced via a blog post published to its website on Sunday, the move is aimed at enhancing user security and ensuring compliance with evolving global regulatory guidelines, joining other exchanges like KuCoin and OKX in tightening its KYC policies.Photo by Brett Jordan on UnsplashChanges taking effect in SeptemberStarting from September 1, Bitget will enforce level 1 KYC verification for all new users accessing its services, including depositing and trading digital assets. Existing users are also required to complete this level 1 verification by October 1. After this deadline, users who have not completed the verification will have limited functionality on the Bitget platform, including only being able to withdraw, cancel orders, redeem subscriptions, and close positions. They will be unable to initiate new trading orders.The KYC process involves verifying users’ identities and is commonly used by regulated entities to assess risk. Bitget emphasizes the importance of this verification process to maintain a secure trading environment and comply with regulatory recommendations.Following an industry trendBitget’s decision to reinforce its KYC standards aligns with the broader trend observed across the cryptocurrency exchange landscape. In the wake of increased regulatory scrutiny earlier this year, many exchanges have taken steps to strengthen their verification procedures. KuCoin, for instance, introduced mandatory identity checks in July to align with global Anti-Money Laundering (AML) regulations. Similarly, OKX is implementing a KYC process for identity verification, with a deadline also set for September.As regulatory frameworks evolve worldwide, cryptocurrency exchanges are under increased pressure to align with stricter standards. Bitget’s decision to enhance its KYC measures signifies its intention to maintain a secure and compliant trading environment for users, and to appease global regulators. This announcement follows a series of proactive steps taken by the exchange this year, indicating its dedication to navigating the changing regulatory landscape and promoting user security.Bitget has made headlines throughout the year for various developments, including the inclusion of Liquid Staking Derivatives (LSDs) as a margin option for crypto futures customers. As recently as last week, the platform garnered attention within the crypto sector, having gotten itself embroiled in a legal dispute with crypto influencer Evan Luthra.Earlier this year the platform acquired the Singapore-based BitKeep cross-chain wallet business. It’s believed that acquisition has assisted the company in achieving further growth in 2023, with 20 million users.Bitget invested $10 million in Fetch.ai, an artificial intelligence platform, and launched a referral program to expand its user base. Moreover, Bitget’s collaboration with comedian Adam Devine for a promotional campaign underscored its innovative marketing strategies.Bitget’s adoption of stricter KYC measures reflects the broader trend of exchanges bolstering their verification procedures in response to global regulatory changes. As regulatory expectations continue to evolve, exchanges worldwide are revisiting their policies to ensure a secure and trustworthy trading environment for their users.