06-01-2023, 08:32 AM
Binance Weighs Staff Cuts amid Regulatory Pressure in the Global Market
<p>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.</p><p>"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."</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">Let me provide some additional clarity via ?. Binance is not cutting 20% of employees as a cost-cutting measure. <a href="https://twitter.com/binance?ref_src=twsrc%5Etfw">@binance</a> experienced true exponential growth these past 5 years — and grew its staff accordingly. This was a historic operational challenge to overcome. <a href="https://t.co/Awmh8PdT8j">https://t.co/Awmh8PdT8j</a></p>— Patrick Hillmann (@PRHillmann) <a href="https://twitter.com/PRHillmann/status/1663925648182607872?ref_src=twsrc%5Etfw">May 31, 2023</a></blockquote><p>Responding to a
20% Layoff Rumour</p><p>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. </p><p>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.</p><p>Regulatory
Headwinds </p><p>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 <a href="https://www.financemagnates.com/cryptocurrency/binance-australia-faces-crises-as-payment-provider-halts-support/" target="_blank" rel="follow">suspend
its Australian dollar services for its subsidiary in Australia</a>. </p><p>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. </p><p>Elsewhere, the
controversial exchange was <a href="https://www.financemagnates.com/cryptocurrency/regulatory-hostility-pushes-binance-out-of-canada/" target="_blank" rel="follow">forced
to close down operations in Canada</a> 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. </p><p>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 <a href="https://www.financemagnates.com/cryptocurrency/binance-eyes-uk-amid-regulatory-challenges-in-the-us/" target="_blank" rel="follow">forced it to withdraw its request for mandatory registration</a> in the region in 2021. However, the exchange is now considering <a href="https://www.financemagnates.com/cryptocurrency/binance-eyes-uk-amid-regulatory-challenges-in-the-us/" target="_blank" rel="follow">registering in the UK</a>.</p><p>Similarly, in the US, Binance and its CEO, Changpeng Zhao, <a href="https://www.financemagnates.com/cryptocurrency/cftc-sues-binance-for-illegal-derivatives-exchange-numerous-violations/" target="_blank" rel="follow">are facing charges</a> initiated by the
Commodities Futures Trading Commission (CFTC) related to several alleged compliance violations.</p><p>Options' Paris office; BidX's new Liquidity Manager; <a href="https://www.financemagnates.com/forex/news-nuggets-31-may-options-paris-office-bidxs-new-liquidity-manager/" target="_blank" rel="follow" class="">read today's news nuggets</a>.</p>
This article was written by Jared Kirui at www.financemagnates.com.
https://www.financemagnates.com//cryptoc...al-market/
<p>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.</p><p>"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."</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">Let me provide some additional clarity via ?. Binance is not cutting 20% of employees as a cost-cutting measure. <a href="https://twitter.com/binance?ref_src=twsrc%5Etfw">@binance</a> experienced true exponential growth these past 5 years — and grew its staff accordingly. This was a historic operational challenge to overcome. <a href="https://t.co/Awmh8PdT8j">https://t.co/Awmh8PdT8j</a></p>— Patrick Hillmann (@PRHillmann) <a href="https://twitter.com/PRHillmann/status/1663925648182607872?ref_src=twsrc%5Etfw">May 31, 2023</a></blockquote><p>Responding to a
20% Layoff Rumour</p><p>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. </p><p>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.</p><p>Regulatory
Headwinds </p><p>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 <a href="https://www.financemagnates.com/cryptocurrency/binance-australia-faces-crises-as-payment-provider-halts-support/" target="_blank" rel="follow">suspend
its Australian dollar services for its subsidiary in Australia</a>. </p><p>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. </p><p>Elsewhere, the
controversial exchange was <a href="https://www.financemagnates.com/cryptocurrency/regulatory-hostility-pushes-binance-out-of-canada/" target="_blank" rel="follow">forced
to close down operations in Canada</a> 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. </p><p>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 <a href="https://www.financemagnates.com/cryptocurrency/binance-eyes-uk-amid-regulatory-challenges-in-the-us/" target="_blank" rel="follow">forced it to withdraw its request for mandatory registration</a> in the region in 2021. However, the exchange is now considering <a href="https://www.financemagnates.com/cryptocurrency/binance-eyes-uk-amid-regulatory-challenges-in-the-us/" target="_blank" rel="follow">registering in the UK</a>.</p><p>Similarly, in the US, Binance and its CEO, Changpeng Zhao, <a href="https://www.financemagnates.com/cryptocurrency/cftc-sues-binance-for-illegal-derivatives-exchange-numerous-violations/" target="_blank" rel="follow">are facing charges</a> initiated by the
Commodities Futures Trading Commission (CFTC) related to several alleged compliance violations.</p><p>Options' Paris office; BidX's new Liquidity Manager; <a href="https://www.financemagnates.com/forex/news-nuggets-31-may-options-paris-office-bidxs-new-liquidity-manager/" target="_blank" rel="follow" class="">read today's news nuggets</a>.</p>
This article was written by Jared Kirui at www.financemagnates.com.
https://www.financemagnates.com//cryptoc...al-market/