Friday, May 24, 2024

Binance Trims Employee Benefits and Faces Regulatory Challenges Globally

According to a recent report by The Wall Street Journal, the global cryptocurrency exchange Binance has reduced several benefits for its employees, including reimbursements for mobile phone usage, fitness, and work-from-home expenses. 

The company cited the “current market environment and regulatory climate” as the reasons for this change, which has led to a decline in profit. This suggests that additional cost-cutting measures may be necessary in the future.

A representative for Binance indicated that the company might consider scaling back on certain products, business units, staff benefits, and policies in response to business and regulatory concerns.

In addition, Binance is reportedly planning to lay off between 1,500 and 3,000 employees by the end of the year, according to an anonymous source cited by CNBC. This information came to light around the company’s six-year anniversary on July 14, 2023.

Binance is currently facing legal challenges globally. In the United States, both the Securities and Exchange Commission and the Commodity Futures Trading Commission have initiated legal proceedings against the company.

The lawsuits allege that Binance and its CEO, Changpeng Zhao, offered unregistered securities. Binance has characterized these legal actions as an example of regulation by enforcement.

On July 5, 2023, the Australian Securities and Investments Commission (ASIC) conducted a search operation at the Binance Australia headquarters. This investigation into the now-closed local derivatives division of the crypto-giant is part of the operation, highlighting the increasing regulatory scrutiny Binance is facing.

This follows the decision to cease facilitating PayID AUD deposits by a third-party payment service provider on May 8, 2023.

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