A spokesperson for Binance confirmed the layoffs, but declined to say how many employees left the company.
List WSJ refers in its report to information directly from the employees of this company. According to them, the dismissal of a thousand people is only the tip of the iceberg. The cuts should continue, the stock exchange could lose up to a third of its employees, according to the source.
Former employees indicate that the layoffs particularly affected customer service workers. The layoffs affected people from around the world, including about thirty customer service employees in India.
Cryptocurrency platforms are racing to capture a bigger piece of the US market
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The problems are escalating
The exchange is facing investigations and regulatory crackdowns both in the US and abroad, which could severely limit its business. This is probably one of the main reasons why Binance management has now decided to make massive layoffs.
At the end of June, for example, the Belgian Financial Market Regulatory Authority (FSMA) took aim at the crypto exchange, as it reported Reuters agency. He issued a decision according to which the largest cryptocurrency exchange in the world must immediately terminate all services provided in the field of virtual currencies in the territory of Belgium.
“Binance offers and provides exchange services in Belgium between virtual and fiat currencies, as well as wallet custody services from non-EEA countries. The authority has therefore ordered Binance to cease offering or providing any such services in Belgium with immediate effect,” the FSMA said in a statement.
Restrictions in the Netherlands
So the problems of this crypto exchange are slowly starting to pile up in Europe. In June, for example, representatives of Binance reported that they were leaving the Dutch market due to their failure to register with the local regulatory body as a virtual asset service provider.
“We regret to announce that Binance is ceasing operations in the Dutch market. From now on, we will no longer accept new users residing in the Netherlands,” the company announced at the end of last week.
Since then, Dutch users are only allowed to withdraw their assets from the platform. So they are not allowed to buy, trade or make deposits.
“Binance already meets EU anti-money laundering and anti-terrorist financing standards, as evidenced by its registrations in other European Union countries, including France, Italy, Spain, Poland, Sweden and Lithuania,” Binance said in a press release.
Investigation in France
In the meantime, however, it has emerged that it is in France that Binance is facing an investigation. According to to the CoinDesk server with investigators focusing precisely on the provision of illegal services in the field of digital assets and involvement in money laundering.
According to the French prosecutor’s office, it is still too early to draw any conclusions. “All documents and data collected during the search will now be subject to an in-depth investigation,” the prosecutor’s office said in a statement, according to CoinDesk.
But according to Binance, this is a routine action. “Inspections carried out by regulators and inspectors are part of the regulatory obligations that all financial institutions must comply with in France. We were inspected by the relevant authorities last week,” a Binance spokesperson said.
Lawsuit in the US
Binance is also solving problems in the US. The Securities and Exchange Commission (SEC) sued the crypto exchange for “violating investor protection rules by operating unregistered exchanges, misrepresenting controls on trading or selling unregistered securities.” Binance founder and current head Changpeng Zhao also faces charges.
“Zhao and Binance engaged in a vast web of fraud, conflicts of interest, lack of disclosure and calculated circumvention of the law, as we allege in a total of 13 indictments,” he said, according to Reuters SEC Chairman Gary Gensler on the case.
At the same time, Gensler warned the general public to beware “of investing your hard-earned money with their help.” He was referring to the Binance crypto exchange.
However, the exchange already stated in an earlier statement that “users’ assets are not at risk in any way”. According to her, the lawsuit is groundless.
People are afraid of deposits. They withdrew $780 million from Binance in 24 hours
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2023-07-18 11:11:15
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