Crypto bank Anchorage Digital cuts 20% of staff citing regulatory uncertainty

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Cryptocurrency bank Anchorage Digital has announced that it will lay off 75 employees, about 20% of its workforce, citing U.S. regulatory uncertainty as a factor in the decision.

March 14th statement He called the job cuts a “strategic realignment to better focus our resources” and pointed to “broader macroeconomic challenges and crypto market volatility” as other factors contributing to the shift in strategy.

The company said market conditions are driving demand for its products, with customer assets under custody at a “record high”, but added:

“These same macroeconomic, market and regulatory dynamics are creating headwinds for our business and the cryptocurrency industry.”

Anchorage became the first U.S.-based crypto firm to be granted a national trust bank charter by the U.S. Office of the Comptroller of the Currency in January 2021, while continuing to shape the digital asset landscape and “regulated solutions for digital.” We expressed our continued confidence in our ability to build. asset holder. ”

The job cuts come at a time when the US banking system is in turmoil after three local banks went bankrupt in just one week.

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Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank have all gone bankrupt since March 8, and the Federal Deposit Insurance Corporation (FDIC) is unusual in insuring all customer deposits above the normally insured standard of $250,000 measures have been taken. SVB and signature.

It’s unclear whether recent developments with SVB, Signature and Silvergate influenced Anchorage’s decision to reduce staff.

Anchorage did not immediately respond to Cointelegraph’s request for comment.

Job cuts within the crypto industry have slowed significantly since the beginning of the year, after crypto companies such as crypto exchanges Coinbase and cut nearly 3,000 positions in January, with 570 in February. Personnel layoffs have become more modest.