There is an event that has been in the languages recently about Binance. However, no statement was made from the cryptocurrency exchange on the subject. Now, he has openly responded to the allegations about the stock market. Let’s have a look at the details.
Binance laid off?
Binance has begun layoffs as part of its periodic review of critical positions. The exchange is reportedly planning to lay off about 20 percent of its workforce in June, though the exact scope remains unclear. The downsizing may be related to the recent closure of Canadian operations and partners elsewhere. Popular crypto journalist Wu Blockchain shared the news. Accordingly, multiple sources reported that they have confirmed the upcoming layoffs at Binance. Binance currently has around 8,000 employees. Accordingly, rumors indicate that the rate of layoffs in June may be around 20%. The layoffs relate to shrinking market share amid market uncertainty and regulatory challenges.
A Binance spokesperson says this is not a downsizing. According to the spokesperson, it is necessary to reassess whether we have the right talent and expertise in critical roles. That’s why the spokesperson emphasizes that they are still trying to fill hundreds of open roles. According to sources familiar with the matter, the compensation plan is formulated according to different circumstances and locations. Meanwhile, some departments in Binance will continue to recruit. Wu’s report also emphasizes the reason for the dismissals. Accordingly, the negative state of the market and the previous aggressive growth policy are among the reasons.
Investigation opened
Binance, on the other hand, is facing investigation in Canada. The Ontario Securities Commission (OSC) in Canada is questioning whether Binance is operating legally. Binance made a statement in response to the investigation decision, as we have mentioned as Kriptokoin.com. He cited new regulatory guidance on stablecoins and investor limits. For this reason, it had previously announced its decision to withdraw from the Canadian market. The investigation order was served on 10 May. Accordingly, it allowed a thorough investigation into whether Binance violated Ontario securities law or acted contrary to the public interest. Binance’s legal representative, Borden Ladner Gervais LLP, stated in a filing that the order is broad and aims to investigate any possible circumvention of securities law and compliance controls by Binance.com.
Binance is trying to expand into markets such as the UAE and Thailand. However, it has recently faced increasing difficulties in regulatory and legal scrutiny in many jurisdictions. The exchange, on the other hand, has faced lawsuits, investigations, and increased surveillance by regulatory agencies. The OSC’s investigative order further adds to the list of legal issues the exchange needs to address. Finally, Binance CEO CZ made statements on the subject. Accordingly, CZ says that although he is a Canadian citizen, it is not possible for the exchange to do business here. CZ attributes the reason for not being able to do this business to the new legal regulations.
investigation phase
Binance’s withdrawal reflects the challenges posed by Canada’s strengthened rules for crypto companies, introduced in response to the collapse of crypto giant FTX last year. Other major exchanges such as OKX and Bybit have also exited the Canadian market. Coinbase Global Inc. chose to stay and register under the new regulations.
The OSC then subpoenaed the Binance exchange, requesting the submission of documents pertaining to the investigation. Binance stressed that the subpoena lacked specificity regarding the required information. Therefore, he argued that the order could not be fully complied with. However, the Capital Markets Court ruled in favor of the OSC, ordering Binance to comply with the subpoena at the hearing on May 26. But Binance reveals a settlement agreement signed with OSC in 2022. Accordingly, he defended the annulment of the investigation order. The court is now due to hold another hearing on jurisdiction on June 2.
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