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

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

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Crypto bank Anchorage Digital announced that it would lay off 75 employees, representing roughly 20% of its workforce, citing regulatory uncertainty in the United States as a factor in its decision.

On a March 14 statement He labeled the layoffs “a strategic realignment to better focus our resources” and pointed to “broad macroeconomic challenges and crypto market volatility” as other factors contributing to his change in strategy.

It said market conditions had boosted demand for its product and that customer assets in custody “are at an all-time high” but added:

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

Anchorage, which became the first US-based crypto company. 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 US banking system is in a state of chaos after three regional banks failed in just one week.

Related: The banks collapse; Stablecoin Depegging: What’s Happening? Watch the live market report

Silicon Valley Bank (SVB), silvergate bankand signature bank all have plunged since March 8, prompting the FDIC to take the extraordinary step of insuring all customer deposits in excess of the $250,000 standard that normally guarantees for SVB and Signature.

It is unclear if recent developments regarding SVB, Signature and Silvergate contributed to Anchorage’s decision to cut staff.

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

Layoffs within the crypto industry have slowed down considerably since the beginning of the year after the near 3,000 positions cut by crypto companies as crypto exchanges Coinbase and crypto.com in January were followed by a quieter turnaround 570 layoffs for February.