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

Its unclear whether Anchorage Digitals layoffs relate to the current turmoil in the United States banking sector. 2789 Total views 84 Total shares Listen to article 0:00 News Own this piece of history

Collect this article as an NFT Crypto bank Anchorage Digital has announced it would be letting go of 75 employees, or approximately 20% of its workforce, citing regulatory uncertainty in the United States as a factor in its decision.

In a March 14 statement,Anchorage labeled the layoffs a strategic realignment to better focus our resources, pointing to broad macroeconomic challenges and crypto market volatility as other factors contributing to its shift in strategy.

It said the market conditions had boosted demand for its product and client assets under custody are at an all-time high, but added:”These same macroeconomic, market, and regulatory dynamics are creating headwinds for our business and the crypto industry.

Anchorage which became the first U.S.-based crypto firm to be granted a national trust bank charter from the Office of the Comptroller of the Currency in January 2021 expressed continued confidence in the digital asset landscape and its ability to build regulated solutions for digital asset holders.

The layoffs come at a time when the banking system in the U.S. is in a state of disarray after three regional banks went under in just one week.

Related: Banks collapsing; stablecoins depegging What is happening? Watch The Market Report live

Silicon Valley Bank, Silvergate Bankand Signature Bank have all gone under since March 8, prompting the Federal Deposit Insurance Corporation to take the extraordinary step of guaranteeing all customer depositsfor SVB and Signature. Its standard threshold for guarantees is $250,000.

@federalreserve @USTreasury @FDICgov issue statement on actions to protect the U.S. economy by strengthening public confidence in our banking system, ensuring depositors’ savings remain safe: https://t.co/YISeTdFPrO Federal Reserve (@federalreserve) March 12, 2023

Its unclear if the recent developments regarding SVB, Signature, and Silvergate contributed to Anchorages decision to cut staff.

Anchorage did not immediately respond to Cointelegraphs request for comment.

Layoffs within the crypto industry have considerably slowed since the beginning of the year, after the nearly 3,000 positions cut by crypto firms such as crypto exchanges Coinbase and Crypto.com in January were followed by a more muted 570 layoffs for February. #Coinbase #Business #Banks #Volatility #United States #Regulation

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