Hong Kong: OSL Digital Currency Exchange Lays Off Employees

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OSL, a Hong Kong-based digital currency exchange, has become the latest digital asset firm to downsize amid the tumultuous market conditions facing the industry. About 40 to 60 employees, or about 15% of its workforce, have been fired from the exchange.

A company spokesperson confirmed the development of the blocksaying it was a difficult decision for the exchange to make and that he recognizes the impact it will have on those involved.

The spokesperson also stressed that the job cuts are not due to lost investments. OSL had no exposure to digital currency or distressed companies, including staked Ether (stETH) and TerraUSD (UST) algorithmic stablecoin Terra.

“It is important to note that OSL has not had exposure to stETH, luna or UST. We also have not had exposure to any of the companies that would face solvency issues,” the person said. .

Along with the layoffs, the spokesperson noted that the exchange has adjusted its business model to focus more on software as a service (SaaS), as well as professional and institutional services.

OSL has become the first and only digital asset company insured and authorized by the Hong Kong Securities and Futures Commission after obtaining its license in 2020, according to a Reuters report.

BC Group, the exchange’s parent company, also has strong backing from leading investors, including Fidelity International and Singaporean sovereign wealth fund GIC.

Digital currency companies struggle to stay profitable

Globally, the finances of digital asset companies have come under severe pressure, leading to many workforce reductions among them. Several exchanges have announced staff cuts in recent months, including heavyweights like Coinbase (NASDAQ: PIECE OF MONEY), Gemini and Crypto.com.

Others have announced layoffs, including BitOasis, BitPanda, and more recently Abra. A common reason is a reduction in trading activity in the market due to the falling price of digital assets. The recent market downturn which is being described as “crypto winter” is not likely to end anytime soon as other markets are also grappling with rising inflation.

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