Crypto exchange Binance lays off employees and loses market share due to regulatory investigations

Cryptocurrency exchange Binance has started laying off its staff due to the difficult situation that it has been in for several months, media reported. The amount of cuts is not yet known, but back in March the company was going to hire an additional 500 new employees. Experts attribute this to Binance’s problems, which began after several investigations by North American regulators. As writes FTdue to these investigations, the market share of this exchange in all cryptocurrency trading over the past three months has decreased from 57.5% to 43% /

In March, the Commodity Futures Trading Commission (CFTC) of the United States filed a lawsuit against Binance and its founder and CEO, Changpeng Zhao. The regulator accuses them of violating a number of US regulations, including those aimed at combating money laundering. After that, users in just one week brought out from the exchange $2.1 billion.

June 1st became known about a new investigation against Binance – this time it was launched by the Canadian Securities and Assets Commission of the province of Ontario. The regulator suspected the crypto exchange of trying to circumvent the standard procedures for checking and obtaining permits when entering the local financial market. It is reported that Canadian regulators handed the notice of the beginning of the investigation to the exchange on May 10.

Evgeniy Khvostik