Regulatory struggles and decreasing profit force Binance to cut some staff benefits.
Leading cryptocurrency exchange, Binance, has reportedly reduced some employee benefits amidst a comprehensive review of its operations.
According to The Wall Street Journal report shared on July 17th, Binance has ceased offering certain reimbursements to its staff, including compensation for mobile phone usage, home office expenditures, and fitness allowances.
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The crypto exchange cited the “current market environment and regulatory climate” as contributing factors to its reduced profitability, hinting at potential further cost-saving measures.
This news comes in the wake of previous reports indicating that Binance has terminated the contracts of over 1,000 employees.
Former employees have suggested that these staff reductions have been implemented worldwide, with customer service personnel bearing the brunt of these changes.
Before its sixth anniversary on July 14th, Binance reportedly employed a global team of around 8,000 individuals. In response to regulatory and business considerations, a Binance spokesperson revealed that the company is contemplating scaling back on "certain products, business units, staff benefits, and policies."
While the "regulatory climate" in the United States was not specifically mentioned by Binance, the company is facing legal battles in the country from both the Securities and Exchange Commission and the Commodity Futures Trading Commission.
These lawsuits, which also involve CEO Changpeng Zhao, accuse Binance of offering unregistered securities. The company has referred to the legal actions as instances of regulation by enforcement.
The changes at Binance highlight the complexities of operating in a volatile market and shifting regulatory environment. However, the steps taken by the crypto exchange underline its commitment to adapt to the ever-evolving crypto industry.
