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
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 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
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.
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.
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This article was written by Jared Kirui at www.financemagnates.com.