Crypto exchange Binance has reportedly laid off more than 1,000 employees, as it plans to focus more on talent density across the organization.
According to Wall Street Journal, Binance could lay off one-third of its workforce, which was nearly 8,000 before the start of layoffs.
Speaking on the recent layoff of employees at Binance, a spokesperson said,
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“As we prepare for the next major bull cycle, it has become clear that we need to focus on talent density across the organization to ensure we remain nimble and dynamic. This is not a case of right-sizing, but rather, re-evaluating whether we have the right talent and expertise in critical roles”.
Bitcoin prices plummeted on Saturday, slipping back nearly $30,000 per token after the news of Binance laying off part of its workforce emerged.
The crypto exchange has faced significant regulatory challenges over the last few months, culminating in lawsuits from the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over alleged mishandling of customer assets and the operation of an illegal, unregistered exchange in the U.S.
Binance has continued to encounter a barrage of regulatory challenges across multiple countries, signaling a significant crackdown on the crypto industry.
Last month, the US regulator sued Binance, its CEO Changpeng Zhao, BAM Trading, and BAM Management over allegedly mishandling funds and lying to regulators.
In a federal lawsuit, the regulator filed 13 charges against the defendants. Later, a US judge urged the SEC to reach a settlement with crypto exchange Binance to let it continue operating in the US.
While it has reached an agreement with the U.S. SEC to dismiss the previous temporary restraining order that aimed to freeze all Binance.US assets, which resulted in it shutting down dollar deposits and setting a June 13 deadline for its US customers to withdraw funds, the regulatory blows haven’t stopped there.
In Belgium, Binance was also ordered by Belgium’s Financial Services and Markets Authority (FSMA) to immediately cease all offers of virtual currency services in the country.
The FSMA noted that “Binance is offering and providing exchange services in Belgium between virtual currencies and legal currencies, as well as custody wallet services, from countries that are not members of the European Economic Area. The FSMA ordered Binance to cease with immediate effect, offering or providing any of its services in Belgium.
As Binance countries face a myriad of regulatory pressures, which has also seen a number of key executive departures, the crypto world continues to watch closely.
Meanwhile, Binance founder Changpeng Zhao has repeatedly dismissed concerns about the future of the exchange. He has underscored Binance’s commitment to cooperate with regulators while noting that the crypto industry lacks clear regulatory frameworks in several countries.
Notably, Zhao mentioned that Binance has grown its international compliance team and advisory board by 500% since 2020, including appointments from major global regulators like the Financial Action Task Force.
He also noted that Binance has been actively implementing Anti-Money Laundering policies on its platform, cooperating with crypto intelligence firm CipherTrace to ensure further protection.