Crypto Bank Anchorage Digital, lays off 20% of its employees due to regulatory uncertainties
According to Anchorage, the decision to reduce headcount was part of a “many months-long” evaluation process.
Anchorage Digital, a cryptocurrency bank, announced the layoff of 75 people, or around 20% of its personnel, citing regulatory uncertainty in the United States as a factor in its decision.
Anchorage described the layoffs as “a strategic realignment to better focus our resources” in a March 14 statement, citing “wide macroeconomic problems and crypto market volatility” as among factors leading to its shift in approach.
The recent banking upheaval in the United States is not thought to have influenced the decision, since Anchorage claimed that the action occurred following a “many months-long evaluation process.”
It stated that market conditions had increased demand for its product and that customer assets under custody were “at an all-time high,” although it added:
“These same macroeconomic, market, and regulatory dynamics are creating headwinds for our business and the crypto industry.”
Anchorage, the first U.S.-based crypto corporation to be given a national trust bank charter by the Office of the Comptroller of the Currency in January 2021, indicated ongoing faith in the digital asset landscape and its capacity to develop “regulated solutions for digital asset holders.”
The cutbacks come at a time when the United States’ financial industry is in chaos, with three regional banks failing in less than a week.
Since March 8, Silicon Valley Bank, Silvergate Bank, and Signature Bank have all failed, causing the Federal Deposit Insurance Corporation to take the unusual step of insuring all customer deposits for SVB and Signature. Its standard guarantee barrier is $250,000.
Layoffs in the crypto business have decreased significantly since the beginning of the year, after roughly 3,000 positions were slashed by crypto firms like as Coinbase and Crypto.com in January, followed by a more moderate 570 layoffs in February.