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 costs.
"Binance is not cutting 20% of employees as a cost-cutting measure," Binance's Chief Strategy Officer, Patrick Hillmann said in a tweet. "We have regularly gone through a talent density audit and resource allocation exercise every six months."
Let me provide some additional clarity via ????. Binance is not cutting 20% of employees as a cost-cutting measure. @binance experienced true exponential growth these past 5 years — and grew its staff accordingly. This was a historic operational challenge to overcome. https://t.co/Awmh8PdT8j
— Patrick Hillmann (@PRHillmann) May 31, 2023
Responding to a 20% Layoff Rumour
Hillmann was responding to a newsletter posted by an independent journalist Colin Wu that 'multiple sources' had confirmed 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 that would guide the company on the direction it was taking. 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 many challenges with the country's financial regulator, the Financial Conduct Authority, which forced it to withdraw its request for mandatory registration in the region in 2021. However, the exchange is now considering registering in the UK.
Similarly, in the US, Binance and its CEO, Changpeng Zhao, are facing charges initiated by the Commodities Futures Trading Commission (CFTC) related to several alleged compliance violations.
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This article was written by Jared Kirui at www.financemagnates.com.
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