2023-07-14 22:45:20
© Reuters Binance Lays Over 1,000 Employees Amid Regulatory Pressure
CriptoFácil – Cryptocurrency exchange Binance, the largest in the world by trading volume, recently laid off more than 1,000 employees, amid regulatory pressure in several countries around the world and investigations in the United States.
According to a Wall Street Journal report, sources said the cuts could result in the loss of more than a third of the exchange’s workforce. Former employees told the report that workers in the customer service sector were heavily affected. Furthermore, the sources said that the cuts affected several Binance units around the world. In India, for example, cuts have affected at least 30 people.
A Binance spokesperson confirmed to the report that it was indeed laying off employees. However, he did not report the number of layoffs. According to the representative, the layoffs are aimed at preparing the exchange for the next major bull cycle.
“It was clear that we need to focus on talent density across the organization to ensure we remain agile and dynamic. This is not a case of downsizing, but rather a case of reassessing whether we have the right talent and experience in critical roles,” he said.
Before the wave of layoffs, Binance had a global team of 8,000 people.
regulatory pressure
As CriptoFácil has been following, Binance has been the target of a series of actions by US regulators. Both the SEC and the US Commodity Futures Trading Commission (CFTC) are suing the exchange.
Among other things, the SEC alleges that Binance traded securities without a license. In other countries around the world, Binance had to close or paralyze its operations.
In addition to ordinary employees, Binance has lost a number of key executives. According to a Fortune report, senior executives such as General Counsel Hon Ng, Chief Strategy Officer Patrick Hillmann, and Senior Vice President of Compliance Steven Christie have left the cryptocurrency exchange.
Bloomberg also reported that Yibo Ling, Chief Business Officer at Binance, has left the company. Binance Global Vice President of Marketing and Communications Steve Milton also left Binance in June, according to his LinkedIn profile.
Binance turns 6 years old
Amidst the negative news, Binance completes six years of existence. Due to the date, the exchange’s CEO, Changpeng Zhao (CZ), published an open letter, highlighting the company’s trajectory in these years, how the exchange endured crypto winters, the bankruptcy of companies in the sector and other challenges.
Regarding the current scenario, CZ pointed out that the regulatory pressure on Binance is due to the size of the company:
“In 2023, we saw the market start to recover. However, we have also seen increased regulatory scrutiny in the industry. This is not unexpected given all that has happened in 2022. And when regulators look at crypto, they look to Binance. That comes with the size. And it is our responsibility to take the lead and work with regulators around the world to move the industry forward,” he said.
Still according to CZ, not everything will be smooth, but Binance will do what it thinks is in the best interest of users. He also stressed that he will continue to collaborate with regulators and stand up for what he believes is right, “even if he has to do it in the courts.”
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