Binance Weighs Staff Cuts amid Regulatory Pressure in the Global Market

Binance Weighs Staff Cuts amid Regulatory Pressure in the Global Market

Time Stamp: May 31, 2023 6:55 PM
Source Node: 2690271

Binance, the largest cryptocurrency exchange by trading volume, is evaluating its headcount, the company said on Wednesday, dispelling rumours that it was laying off employees to cut cost.

"Binance is not cutting 20% of employees as a cost-cutting measure," Binance Chief Communications Officer Patric Hillmann said in a tweet. "We have regularly gone through a talent density audit and resource allocation exercise every six months."

Hillmann was responding to a newsletter posted by independent journalist Colin Wu that 'multiple sources' had confirmed that the exchange had already laid off 20% of its employees from its total headcount of 8,000.

According to Hillmann, there was no specific number of staff the exchange was targeting to lay off. Instead, it was reportedly conducting a talent density audit to inform its direction. Furthermore, the exchange said it was seeking to fill more open positions.

Regulatory Headwinds

Binance has faced regulatory pressure in several global markets, hindering its efforts to grow its customer base. Finance Magnates reported in mid-May that the company had to suspend its Australian dollar services for its subsidiary in Australia.

Specifically, Binance is struggling to find reliable banking partners to support its services. For instance, the decision to halt its fiat currency deposits and withdrawal services in Australia was due to a decision by a third-party to stop payment support offered to the exchange.

Elsewhere, the controversial exchange was forced to close down operations in Canada due to stringent requirements around stablecoins and investor limits. The Canadian financial regulator imposed a requirement for the registration of cryptocurrency exchanges operating in the country.

The regulatory pressure is no different in the UK where Binance has had challenges with the country's financial regulator, the Financial Conduct Authority, which forced it to withdraw its request from a mandatory registration in the region in 2021. However, the exchange is now considering becoming registered in UK registration.

Similarly, in the US, Binance and its CEO, Changpeng Zhao, are facing charges initiated by the Commodities Futures Trading Commission and related to several alleged compliance violations.

Options' Paris office; BidX's new Liquidity Manager; read today's news nuggets.

Binance, the largest cryptocurrency exchange by trading volume, is evaluating its headcount, the company said on Wednesday, dispelling rumours that it was laying off employees to cut cost.

"Binance is not cutting 20% of employees as a cost-cutting measure," Binance Chief Communications Officer Patric Hillmann said in a tweet. "We have regularly gone through a talent density audit and resource allocation exercise every six months."

Hillmann was responding to a newsletter posted by independent journalist Colin Wu that 'multiple sources' had confirmed that the exchange had already laid off 20% of its employees from its total headcount of 8,000.

According to Hillmann, there was no specific number of staff the exchange was targeting to lay off. Instead, it was reportedly conducting a talent density audit to inform its direction. Furthermore, the exchange said it was seeking to fill more open positions.

Regulatory Headwinds

Binance has faced regulatory pressure in several global markets, hindering its efforts to grow its customer base. Finance Magnates reported in mid-May that the company had to suspend its Australian dollar services for its subsidiary in Australia.

Specifically, Binance is struggling to find reliable banking partners to support its services. For instance, the decision to halt its fiat currency deposits and withdrawal services in Australia was due to a decision by a third-party to stop payment support offered to the exchange.

Elsewhere, the controversial exchange was forced to close down operations in Canada due to stringent requirements around stablecoins and investor limits. The Canadian financial regulator imposed a requirement for the registration of cryptocurrency exchanges operating in the country.

The regulatory pressure is no different in the UK where Binance has had challenges with the country's financial regulator, the Financial Conduct Authority, which forced it to withdraw its request from a mandatory registration in the region in 2021. However, the exchange is now considering becoming registered in UK registration.

Similarly, in the US, Binance and its CEO, Changpeng Zhao, are facing charges initiated by the Commodities Futures Trading Commission and related to several alleged compliance violations.

Options' Paris office; BidX's new Liquidity Manager; read today's news nuggets.

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