Binance Weighs Staff Cuts amid Regulatory Pressure in the Global Market

Binance, the largest cryptocurrency exchange by tradingvolume, is evaluating its headcount, the company said on Wednesday, dispellingrumours that it was laying off employees to cut costs.

“Binance is notcutting 20% of employees as a cost-cutting measure,” Binance’s ChiefStrategy Officer, Patrick Hillmann said in a tweet. “We have regularlygone through a talent density audit and resource allocation exercise every sixmonths.”

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 Hillman (@PRHillman) May 31, 2023

Responding to a20% Layoff Rumour

Hillmann was responding to a newsletter posted by an independent journalist Colin Wu that ‘multiple sources’ hadconfirmed the exchange had already laid off 20% of its employees from itstotal 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 openpositions.

RegulatoryHeadwinds

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

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

Elsewhere, thecontroversial exchange was forcedto close down operations in Canada dueto stringent requirements around stablecoins and investor limits. The Canadian financial regulator imposed a requirement for the registration ofcryptocurrency exchanges operating in the country.

The regulatory pressureis no different in the UK where Binance has had many challenges with the country’sfinancial 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 theCommodities Futures Trading Commission (CFTC) 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 tradingvolume, is evaluating its headcount, the company said on Wednesday, dispellingrumours that it was laying off employees to cut costs.

“Binance is notcutting 20% of employees as a cost-cutting measure,” Binance’s ChiefStrategy Officer, Patrick Hillmann said in a tweet. “We have regularlygone through a talent density audit and resource allocation exercise every sixmonths.”

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 Hillman (@PRHillman) May 31, 2023

Responding to a20% Layoff Rumour

Hillmann was responding to a newsletter posted by an independent journalist Colin Wu that ‘multiple sources’ hadconfirmed the exchange had already laid off 20% of its employees from itstotal 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 openpositions.

RegulatoryHeadwinds

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

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

Elsewhere, thecontroversial exchange was forcedto close down operations in Canada dueto stringent requirements around stablecoins and investor limits. The Canadian financial regulator imposed a requirement for the registration ofcryptocurrency exchanges operating in the country.

The regulatory pressureis no different in the UK where Binance has had many challenges with the country’sfinancial 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 theCommodities Futures Trading Commission (CFTC) related to several alleged compliance violations.

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

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