WikiBit Exchange Exit Risk Rankings #57: BTSE — Withdrawal Complaints Mount, Offshore Compliance Story Falls Apart: How Much Longer Can BTSE Hold On?

Introduction: An Exchange Whose Offshore Compliance Narrative Is Falling Apart　　In the first 56 editions of this series, we investigated a range of exchanges, from HashKey to BloFin. For Edition #57, were turning our attention to an exchange with a distinctly offshore profile: BTSE (btse.com).　　On paper, BTSE has an impressive background. Founded in 2018 by traditional finance traders and technology professionals, the exchange was acquired by Talos Global, with Henry Liu taking over as CEO in 2022. It passed a Hacken Proof of Reserves (PoR) audit on April 9, 2026, and published an asset transparency report. BTSE claims that more than 99% of its assets are held in cold wallets and that it maintains an insurance fund. According to CoinPaprikas adjusted data, its 24-hour trading volume stands at approximately $430 million, ranking it 24th among 136 centralized exchanges.　　But the other side of the story is considerably less reassuring.　　On July 24, 2025, the Seychelles Financial Services Authority (FSA) formally rejected the VASP license application submitted by BTSE Holdings Limited and instructed the company to “immediately cease all operations or relocate its services outside the jurisdiction.”　　WikiBit gives BTSE a score of just 5.94/10, explicitly flagging its regulatory environment as relatively loose based on