The Wall Street Journal recently reported that the global cryptocurrency exchange Binance has slashed various employee benefits, including reimbursements for mobile phone usage, fitness, and work-from-home expenses.
The corporation cited the “current market environment and regulatory climate” as the grounds for the shift, which has resulted in a profit decline. This implies that further cost-cutting measures may be required in the future. In response to business and regulatory concerns, a Binance spokesperson said that the company would consider reducing back on specific products, business divisions, employee benefits, and rules.
Furthermore, according to an anonymous source, Binance plans to lay off between 1,500 and 3,000 staff before the end of the year. This information became public around the company’s six-year anniversary on July 14, 2023. Binance is currently facing legal issues all across the world. Both the Securities and Exchange Commission and the Commodity Futures Trading Commission have launched legal procedures against the corporation in the United States.
The complaints claim that Binance and its CEO, Changpeng Zhao, marketed unregistered securities. Binance has described these legal actions as an example of regulation through enforcement.
The Australian Securities and Investments Commission (ASIC) conducted a search at the Binance Australia headquarters on July 5, 2023. The operation includes an inquiry into the crypto-giant’s now-closed local derivatives subsidiary, illustrating the rising regulatory scrutiny Binance is experiencing.This comes after a third-party payment service provider decided to stop enabling PayID AUD deposits on May 8, 2023.