Crypto Firm Cuts Staff, Cites US Regulatory Uncertainty

• Anchorage Digital, a crypto bank in San Francisco, is cutting 75 employees or 20% of its workforce due to the current downturn in the crypto market and US regulatory uncertainty.
• The company has cited a range of factors for this decision, including macroeconomic challenges and unclear regulatory landscape in the US.
• Numerous other crypto companies have also made staff cuts recently due to similar reasons.

Anchorage Digital Staff Cut

Anchorage Digital, a crypto bank based in San Francisco, is making substantial staff cuts in response to the current downturn in the crypto market and regulatory uncertainty in the United States. According to Bloomberg, the company is laying off 75 employees, or roughly 20% of its workforce. In a statement, Anchorage Digital cited a range of factors, including the volatile state of the crypto market, broader macroeconomic challenges, and the unclear regulatory landscape in the US.

Regulatory Issues

While Anchorage is a federally chartered crypto bank, it has faced issues with US regulators. Less than a year ago, in April 2022, the Office of the Comptroller of the Currency argued that the bank’s compliance program lacked staff and internal processes to verify customers and prevent money laundering as well as report suspicious transactions.

Custody Exchange Network

In June last year Anchorage Digital announced that it had integrated with Binance.US and gained commitments from crypto platforms CoinList Blockchain.com Strix Leviathan and Wintermute to build a custody exchange network.

Other Crypto Companies

Misery loves company: numerous other crypto companies have also made staff cuts recently due to similar reasons such as Kraken which laid off 30% of its workforce or 1 100 people ByBit which plans to cut its workforce by 30% Silvergate which cut 40% of its global staff Luno which slashed 35% of its global workforce while Gemini laid off 10%.

Summary

In summary Anchorage Digital is cutting down on their employee count due to macroeconomic challenges volatile cryptocurrency markets and uncertain regulations while many other companies are doing likewise citing similar conditions These job losses are indicative of an industry-wide trend but may be necessary for these firms’ survival during these difficult times

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