- The media reported about layoffs at Binance. Bitcoin exchange Binance has begun laying off staff. Presumably, the percentage of laid-off staff will be 20%, reported reporter Colin Wu, citing his own sources.
The cryptocurrency market is a sensitive one and investors quickly react by such information. The layoffs is surely a sign that business is either closing up or being restructured. The regulation in Canada that binance couldn't meet up with automatically means some workers would be relieved of duty since the service is not needed in Canada for now just with what happen in coinbase losing almost 900 employees. Laying off employees is reasonable but it will create understable panic and we have seen the effect on the market. Yesterday bitcoin lost more than $2,000.
- The world's largest cryptocurrency exchange, Binance, has lost a quarter of its market share in the past three months as a U.S. regulator prosecutes it for allegedly violating U.S. federal laws. In February, New York regulators shut down Binance-branded Stablecoin issuance.
- The SEC has sued Binance and Changpeng Zhao. The Securities and Exchange Commission (SEC) sued bitcoin exchange Binance and its CEO Changpeng Zhao.
The U.S. regulator brought 13 charges, including unregistered offers and sales of BNB and BUSD tokens, Simple Earn and BNB Vault products and stacking.
The suit also alleges that Binance failed to register its Binance.com platform as an exchange, broker-dealer or clearing agency, as did the U.S. unit. Zhao was sued as a "controlling person."
These are very much heavy allegations that is capable of pulling the trust of binance of the rug. Investors confidence is required in crypto exchange especially cex
- In your opinion, is this a consequence of increased pressure on China by the U.S.?
I don't think this is about China. If binance have compromised then sec has all legal means to go after them to protect investors.