Bitkub Addresses Market Conditions Thru Job Cuts

Several South Korean crypto-only exchanges have long been struggling to keep their business afloat due to their prolonged weak performances. The local news outlet Etoday reported that the persistent underperformance of these local crypto exchanges is mounting pressure on their corporate operation and management, resulting in them shutting down their businesses. The situation hinders them from meeting the requirements set by the Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC).  Their inability to generate sufficient revenue, due to faltering token trading volumes, makes complying with the FIU guidelines a daunting task.Photo by Anne Nygård on UnsplashCascading closure of crypto exchanges According to crypto industry insiders, local crypto-only exchanges including Cashierest, Coinbit, Huobi Korea, Probit and Tennten have announced their service closure as early as the second half of last year. On Nov. 6, Cashierest announced it was shutting down its services, with Coinbit following suit in the same month. The cascading closure announcements from crypto exchanges raised concerns about their potential harm on investors.  In an effort to protect crypto investors, the FIU has released a statement that local crypto exchanges are obliged to meet the requirements of the FIU in compliance with the Virtual Asset User Protection Act, despite their closing of services. Furthermore, the regulator said finalizing business closure requires due assessment by the FIU.  "Virtual asset service providers (VASPs) must notify their users of the closure and explain how to reclaim their assets at least one month before the business closing date. They must also support users to withdraw their assets for at least three months before closing," the FIU stated.  Struggling to meet FIU requirements However, some point out that it would be challenging for near-bankrupt crypto exchanges to run a customer service center for more than three months. Some exchanges allow users to deposit and withdraw their assets until their closure, as they would under normal conditions, but charge additional fees afterward. "It is very demanding to operate customer services when we're seeing no actual gains," one exchange official said.  It has been found that some crypto exchanges failed to register a change in their business state with the FIU, which is mandatory in the event of business location or contact changes, under the Financial Transaction Reports Act.  When Etoday reporters visited the offices of some of these crypto exchanges, they were met with empty rooms. One person who is familiar with the matter said, "The exchange has moved its office to another location and is scheduled to resume service in March." 

The Japanese government and ruling coalition have begun coordinating plans to introduce a flat 20% separate tax on cryptocurrency gains, based on a Dec. 1 report by Nikkei cited by CoinDesk Japan. The change is expected to be reflected in the 2026 tax reform outline.Photo by Nataliya Vaitkevich on PexelsLower crypto taxes, aligned with stocksUnder the proposal, income from crypto trading would be taxed in line with traditional financial instruments such as stocks. This would mark a notable decrease from the current regime, under which cryptocurrency gains are treated in principle as miscellaneous income, combined with salary and other earnings, and taxed on a comprehensive basis at rates that can climb to around 55% including local taxes. Policymakers are reportedly treating the move toward separate taxation as contingent on the establishment of a stronger investor-protection framework through tighter regulation. The planned reforms are also seen as potentially laying the groundwork for the eventual domestic approval of exchange-traded funds (ETFs) backed by crypto assets. Market pullback deepens on policy signalsThe more favorable tax outlook for investors came against a weaker market backdrop. According to CoinMarketCap, the total crypto market capitalization declined about 1.73% over the past 24 hours, extending a pullback that followed recent communications from the central banks of Japan and China. In a Dec. 1 report by Reuters, Bank of Japan (BOJ) Governor Kazuo Ueda indicated that the central bank intended to consider the possibility of an interest-rate increase at its next policy meeting. His comments are interpreted as suggesting a potential shift toward higher rates in December, prompting concern that yen-funded carry trades could begin to be unwound. Such trades typically involve borrowing yen at low interest rates to invest in higher-yielding assets, and their reversal can create pressure on broader asset markets. In a separate weekend statement, the People’s Bank of China (PBOC) restated that digital asset trading remains illegal in China and highlighted what it described as a renewed pickup in speculative crypto activity. The central bank also singled out stablecoins as a source of risk, pointing to concerns about fraud, money laundering, and unauthorized cross-border capital flows that could undermine Beijing’s efforts to maintain capital controls. Against this policy backdrop, major cryptocurrencies moved in mixed directions. Over the past 24 hours, Bitcoin inched up around 1.02%, Ethereum declined about 0.86%, and XRP fell roughly 0.9%. Analysts split amid weak market activityAnalysts and market commentators continued to diverge on the implications of the latest pullback. Veteran trader Peter Brandt suggested on X that Bitcoin may be entering a deeper corrective phase similar to those seen in past bull markets. He cited historical instances of “exponential decay” and suggested the price could retrace toward $50,000 before potentially advancing to the $200,000–$250,000 range in the next rally cycle. Author Robert Kiyosaki, known for “Rich Dad Poor Dad,” reiterated his preference for assets such as gold, silver, Bitcoin, and Ethereum in a Nov. 29 post on X, linking this stance to his view that the Japanese carry trade had effectively run its course. Roughly a week before that message, he had disclosed selling about $2.25 million worth of Bitcoin at around $90,000 per coin, noting that his initial purchase price had been close to $6,000. By contrast, long-time Bitcoin critic Peter Schiff continued to argue in favor of precious metals. He contended that gold derives inherent value from industrial and commercial uses tied to its physical properties, including conductivity, ease of shaping, and resistance to corrosion, while maintaining that Bitcoin lacks practical utility and instead depends on investor belief. SwanDesk CEO Jacob King, another skeptic of the asset, offered an even more pessimistic assessment. He said he did not expect Bitcoin to revisit its previous all-time high and characterized the current decline as the final bear market before the asset ultimately fades from relevance. Shorter-term indicators have reinforced expectations for muted trading conditions. According to CNBC, Grayscale Head of Research Zach Pandl pointed to a decline in open interest for perpetual futures, interpreting it as a sign of reduced speculative positioning and leverage. He also highlighted relatively subdued trading volumes on both centralized and decentralized exchanges, suggesting that near-term market activity is likely to remain restrained. 

JD.com, one of China’s largest business-to-consumer (B2C) online retailers, is understood to have registered “JCOIN” and “JOYCOIN” ahead of Hong Kong’s Stablecoins Ordinance going live on Aug. 1. According to a report published by the Hong Kong Economic Times, in its trademark registration application, JD.com described the services associated with the two brand names as implicating the provision of electronic fund transfers and cryptocurrency-related financial transactions achieved via blockchain technology.Photo by tommao wang on UnsplashHKD-pegged stablecoinThe trademark registrations were filed by JD.com's subsidiary company, JD Coinlink Technology. The company was announced as a participant in the Hong Kong Monetary Authority’s (HKMA) stablecoin issuer sandbox last year. Around that timeframe, it also unveiled plans to launch a stablecoin pegged to the Hong Kong dollar (HKD).  That move was followed by British multinational bank Standard Chartered in February, with it announcing the launch of a HKD-pegged stablecoin in Hong Kong alongside local partners. Standard Chartered and its partners have also been participants in Hong Kong’s stablecoin issuer sandbox. Liu Peng, CEO of JD Coinlink Technology, provided an update in May, outlining that its stablecoin was entering phase two of sandbox testing. He stated that he hopes the project “contributes to payment efficiency not only within JD’s ecosystem but also for businesses and individuals worldwide.” On its website, JD Coinlink Technology describes its “JINGDONG Stablecoin” as a stablecoin backed 1:1 by the Hong Kong dollar, with the goal of meeting regulatory compliance and becoming “one of the leading digital currencies for businesses and individuals seeking for efficient, cost-effective, and secure payment solutions.” In a press briefing in Beijing in June, Peng outlined that the company was making preparations to apply for stablecoin issuer licensing in several markets. The JD Coinlink Technology CEO asserted that stablecoins “can reduce payment costs by 90% and complete transactions within 10 seconds.”  Ant Group, a subsidiary of another Chinese e-commerce giant, Alibaba, has also been following a similar track, preparing to apply for stablecoin licensing in both Hong Kong and Singapore. Push for yuan-pegged stablecoinsBoth Ant Group and JD.com have been lobbying the authorities in China for permission to issue a yuan-pegged stablecoin. Mainland China continues to impose a prohibition on crypto trading and mining, although more recently there have been signs that it may be considering accommodating stablecoins. Behind closed doors, it is understood that JD.com has urged officials at the People’s Bank of China to permit the issuance of offshore yuan-pegged stablecoins as a means to promote use of the yuan internationally and to enable more efficient cross-border trade. Hong Kong is perceived by many commentators as a testing ground for the digital assets sector in China. However, regulators in the Chinese autonomous territory have expressed caution around approving fiat-backed stablecoins tied to foreign currencies, noting that such issuances would require prior “discussions with the relevant authorities.” With Hong Kong’s Stablecoins Ordinance going live on Aug. 1, the HKMA published further guidelines for licensed stablecoin issuers on July 29. The regulator disclosed that it intends to publish a public registry of licensed stablecoin issuers for the benefit of the general public.