Bitget Claims Debt-Free Status via Proof of Reserves

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.

Indian Crypto Exchange CoinDCX Implements Workforce ReductionIndian cryptocurrency exchange CoinDCX has recently taken the step of reducing its workforce by approximately 12%.The strategic move was announced by way of a statement from CoinDCX founders Sumit Gupta and Neeraj Khandelwal, published to the firm’s website on Tuesday. The cutback is being made in response to the prolonged bear market and the consequences of India’s Tax Deducted at Source (TDS) policy on domestic exchanges.Photo by Hardik Joshi on UnsplashMacroeconomic and crypto market headwindsGupta and Khandelwal described the decision that they’ve taken as being challenging, although they outlined that it was taken with a view toward steering the business to profitability and sustainability amidst trying macroeconomic conditions in the crypto sector.The company has encountered significant headwinds due to the overall tough conditions in the crypto market. These challenges have resulted in decreased trading volumes and revenues for CoinDCX. In light of these circumstances, the company has determined that resizing specific teams within the organization is necessary in order to secure the viability and long-term growth of the operation.71 jobs cutApproximately 71 employees are being affected by the workforce reduction, out of CoinDCX’s total workforce of around 590 based in Mumbai. To mitigate the impact on these employees, the company has implemented a support package aimed at providing comprehensive assistance during this transition.This package includes severance pay equivalent to the full notice period, an extra month of salary, compensation for variable pay and incentives, encashment of unused leave days, extension of health insurance and wellness benefits, and access to counseling support.In spite of the necessity for workforce reduction, CoinDCX’s outlook on the Indian market remains optimistic. The company remains steadfast in its commitment to driving crypto and Web3 adoption to a target of 50 million individuals by 2025.No further reduction plansThe founders emphasized that this reduction is a unique, targeted action and that they have no further plans for team reductions. They claim to have engaged in thorough discussions with senior leaders within the company to ascertain the best path forward, with a commitment to overcoming challenges and reinforcing the company’s foundation.In spite of this setback CoinDCX maintains that its vision is intact, encompassing a presence not only in the Indian market but also further afield.Industry trendCoinDCX’s current struggle has been mirrored by a plethora of leading crypto exchanges over the course of recent months. In July, it emerged that Seychelles-based Kucoin was cutting jobs although the firm’s CEO asserted that it wasn’t a layoff plan and more so a reevaluation of the organization’s structure.Earlier that month, Thai digital asset exchange Bitkub cut its headcount in an effort to manage costs during this period of challenging market conditions. Recently, leading global crypto exchange Binance announced one thousand job losses while stating that more jobs may be cut in the future.The decision made by CoinDCX underscores the broader struggles that startups and businesses within the crypto space face. With the bear market’s impact and regulatory pressures, companies are being compelled to make difficult choices in pursuit of long-term sustainability.

As South Korea’s cryptocurrency market rapidly evolves, authorities are working to keep the nation's regulatory framework up to speed. Recent initiatives aim to provide clearer guidelines across the sector, encompassing tax policy adjustments, seized assets, and bank-backed digital tokens.Photo by André François McKenzie on UnsplashGovt tightens control over seized cryptoAccording to Yonhap News, the government has approved a new framework for managing roughly 78 billion won ($54 million) in crypto held by the public sector. The move is aimed at imposing clearer controls over digital assets that state agencies hold, including tokens seized or frozen during investigations. Under the new rules, crypto taken from personal wallets must be transferred immediately into agency-controlled cold wallets kept offline. Sensitive access data, including private keys and recovery phrases, must be split among at least two people rather than left in the hands of a single official. That push for tighter custody comes as South Korea also explores new forms of digital money. A bank-issued product known as a deposit token is emerging as a possible middle ground between private stablecoins and a central bank digital currency, or CBDC. Deposit tokens are digital assets backed by bank deposits. They can function like stablecoins in payments, but they are issued by banks rather than crypto firms. The idea is gaining attention as legal uncertainty around stablecoins drags on. South Korea’s central bank has already moved its CBDC pilot, Project Hangang, into a second phase. The Digital Times reported that two more lenders, Kyongnam Bank and iM Bank, have joined the seven banks that participated in the first round: KB Kookmin, Shinhan, Hana, Woori, NH NongHyup, IBK, and Busan Bank. In practice, the emerging view is that deposit tokens may not compete directly with a future CBDC so much as complement it, especially in everyday payments and settlement where banks already have distribution, compliance, and customer infrastructure. Tax gaps persist as market expandsEven as the payments debate advances, tax policy remains underdeveloped. South Korea is set to begin taxing crypto assets in January 2027, but the National Tax Service still does not have detailed standards for several common types of crypto income, according to the Herald Business. Those include staking, lending, airdrops, hard forks, NFTs, and decentralized finance. In a written reply to a lawmaker’s office, the agency said it is still collecting overseas legislative examples and expert views on what should count as taxable crypto income and how acquisition costs should be calculated. That gap is especially important for offshore activity. Profits earned through overseas exchanges are difficult to track outside the 56 jurisdictions participating in the Crypto-Asset Reporting Framework (CARF), an OECD-developed international regime for sharing tax information on crypto assets. The result is growing concern over uneven tax treatment and the possibility that capital could shift abroad if enforcement remains patchy. At the same time, global stablecoin issuers are trying to deepen ties with Korean institutions. Tether, the company behind stablecoin USDT, has returned to South Korea again this year after visiting in 2025. The Aju Business Daily reported that it has been in talks with players including KB Financial Group and local exchange Coinone, looking for ways to expand trading activity and circulation. Tether has argued that its network could help broaden Korea’s crypto ecosystem, while also promoting its new dollar-pegged stablecoin, USAT, as compliant and secure. The sector’s operational risks are also still visible at the exchange level. Bithumb has begun legal proceedings to freeze assets as it tries to recover seven Bitcoin that it failed to claw back after an erroneous payout during a promotional event in February. At the time, the unrecovered amount was worth about 700 million won ($483,000). The move points to a likely civil suit. According to an industry source cited by Chosun Biz, some customers refused to return the funds, arguing that the mistake was the company’s fault. Legal opinion in South Korea, however, appears to be broadly in Bithumb’s favor if the dispute ends up in court.