Hong Kong Commits to Become a Crypto Hub as Fidelity-Backed OSL Exchange Cuts Staff
TL;DR OSL Exchange, a cryptocurrency trading platform based in Hong Kong, is reducing its headcount. The move comes as the country plans to become a regional crypto hub. Cryptocurrency exchanges across the world have been announcing layoffs due to the bear market.
The Hong Kong-based crypto exchange OSL is reducing its headcount, but the country envisions becoming a crypto hub.
The employees of the OSL exchange are the latest victim of the crypto winter, as the firm decides to go into a cost-cutting mode. According to a Bloomberg article, the exchange backed by Fidelity Investments is cutting costs by about one-third.
OSL, Hong Kong's first compliant cryptocurrency trading platform, is cutting costs by about 1/3, including by laying off staff, though OSL declined to say how many. OSL already laid off 15% of its workforce in June 2022. Bloomberg reported.https://t.co/B3JprhkoUK — Wu Blockchain (@WuBlockchain) January 17, 2023
Hugh Madden, the CEO at Hong Kong-based OSL, says that their cost-cutting decision is made considering the current market conditions and will include headcount reduction. However, there is no information on the number of employees that the layoff will impact.
The layoff at OSL comes when Hong Kong plans to expand its crypto foothold. The country’s Regulatory Authorities are willing to allow retail investors to trade highly liquid crypto. Earlier, it was limited to just the investors with $1 million+ bankable assets.
The country is also working to attract businesses in the crypto sector. Paul Chan, the Financial Secretary of Hong Kong, says they are committed to becoming a regional crypto hub. He further said, “As certain crypto exchanges collapsed one after another, Hong Kong became a quality standing point for digital asset corporates. The city has a robust regulatory framework that matches international norms and standards while prohibiting free-riders.”
Crypto Exchange Layoffs Continue in 2023
OSL is not the only exchange to announce layoffs in 2023. The crypto brokerage Blockchain.com slashed its full-time employees’ headcount by 28% last week, intending to turn profitable in 2023. According to a source close to the situation, the firm also laid off up to 100 contract employees, making up around 80% of the total contractors.
Crypto exchange, Crypto.com also announced to slash 20% of its staff last week for a longer-term standpoint. It is worth noting that Coinbase also announced laying off 950 employees, taking its staff cuts to over 2,000 since June 2022.
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