Hong Kong-based crypto exchange OSL is downsizing its workforce, but envisions the country becoming a crypto hub.
OSL Exchange employees are the latest victims of crypto winter, as the firm decides to go into cost-cutting mode. According to a Bloomberg article, the Fidelity Investments-backed exchange is cutting costs by about one-third.
OSL exchange cuts costs, while Hong Kong seeks to become a crypto hub.
Hugh Madden, CEO of Hong Kong-based OSL, says their cost-cutting decision has been made considering current market conditions and will include reducing the workforce. However, there is no information on the number of employees who will be affected by the layoffs.
The layoffs at OSL come as Hong Kong plans to expand its crypto penetration. The country’s regulatory authorities are set to allow retail investors to trade highly liquid cryptos. Earlier, this was limited to investors with only $1 million+ of bankable assets.
The country is also working to attract businesses in the crypto sector. Hong Kong’s Financial Secretary Paul Chan says they are committed to becoming a regional crypto hub. He further added, “Hong Kong has become a quality standing point for digital asset corporates as some crypto exchanges collapse one after the other. The city has a strong regulatory framework that adheres to international norms and standards while restricting free-riders.” matches.
Crypto Exchange Layoffs Continue in 2023
OSL is not the only exchange to announce layoffs in 2023. Crypto brokerage Blockchain.com slashed its full-time workforce by 28% last week, intending to become profitable in 2023. According to a source close to the situation, the firm also laid off 100 contract workers, making up about 80% of the total contractors.
Crypto exchange, Crypto.com, also announced last week to slash 20% of its workforce for a longer-term outlook. It’s worth noting that Coinbase also announced 950 job cuts through June 2022, totaling more than 2,000 employees.
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BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.