San Francisco-based cryptocurrency bank, Anchorage Digital has decided to trim nearly 20% of its workforce citing uncertain crypto regulatory landscape in the United States.
The digital assets sector is reeling under severe heat as regulatory agencies ramp up policies that could potentially harm the industry. Of late, American financial watchdogs went on the offensive to attack several crypto companies and disrupt their operations. The recent crackdown comes after a series of failure of several high-profile crypto companies last year.
Amid the ongoing market rout, crypto focused companies are grappling to steer away from the dire financial predicament. The recent collapse of Sillicon Valley Bank (SVB) and Signature Bank have added to the woes of the entire crypto ecosystem. In wake of such looming uncertainity, another crypto platform, Anchorage has become the latest industry participant to add to the streak of fateful events that have shaken up crypto banks in the US.
Another Crypto Bank Feels Market Jitters
According to an official press release, Anchorage Digital announced it would be letting go of 75 employees, or approximately 20% of its workforce following the dramatic shutdowns of three crypto-friendly lenders — Silvergate Bank, Signature Bank, and the Silicon Valley Bank.
Anchorage Digital cited the uncertain US crypto regulatory landscape while cutting 20% of its staff https://t.co/XfmqiUSy2M
— Bloomberg (@business) March 14, 2023
On March 14, the financial institution noted the layoffs a strategic realignment to better focus on its resources citing macroeconomic challenges and crypto market volatility as other factors contributing to its decision. Anchorage explained,
“We have restructured our team and will be parting with 75 employees (approximately 20% of our team). This is in response to an evolving landscape facing the crypto industry at-large, shaped by regulatory uncertainty in the U.S., broad macroeconomic challenges, and crypto market volatility.”
Crypto Soar Despite Collapses
Despite the fallouts, the cryptocurrency market remains unfazed as it continues to climb towards greener pastures. At the time of writing, the global crypto market cap is up 1.66% to $1.09 trillion. The total crypto market volume over the last 24 hours jumped 13.76% to $99.36 billion.
At the same time crypto heavyweights such as Bitcoin (BTC) and Ethereum (ETH) gained more than 1% to trade at $24,717 and $1,699, respectively. Major altcoins including XRP, Solana (SOL), Polygon (MATIC) and Polkadot (DOT) among others also traded higher. However, Cardano (ADA) slipped 0.19% in the last 24 hours to hover at $ 0.34.