Binance cuts employee benefits amid reassessment
The company blames the work environment and the regulatory landscape for the cut in benefits to its workers
Cryptocurrency exchange Binance reportedly recently implemented reductions in certain benefits granted to its employees during the month of June, as part of the company’s ongoing restructuring efforts.
According to a report published on July 17 by The Wall Street Journal, Binance reported that it will no longer offer reimbursements to employees for certain expenses, such as mobile phone usage, gym memberships, and working from home. The exchange cited the “current market environment and regulatory landscape” as reasons for this move, arguing that declining profits have prompted the need to take additional steps to reduce expenses.
This report comes on the heels of another that suggested Binance had laid off more than 1,000 employees in a span of just a few weeks. Before its sixth anniversary on July 14, the cryptocurrency company had approximately 8,000 employees. A Binance spokesperson said that the company would be considering reducing “certain products, business units, benefits, and personnel policies” in response to business and regulatory concerns.
Although Binance did not explicitly mention the “regulatory landscape” of the United States, the company faces lawsuits from both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in that country. Both the cryptocurrency exchange and its CEO, Changpeng Zhao, have been sued for allegedly offering unregistered securities. Binance has expressed its position that these legal actions represent an example of regulation through law enforcement.
K. Tovar
Source: WSJ
(Reference image source: Kanchanara, Unsplash)
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