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

Crypto slope Anchorage Digital announced it would beryllium letting spell of 75 employees, representing astir 20% of its workforce, citing regulatory uncertainty successful the United States arsenic a origin successful its decision.

In a March 14 statement labeled the layoffs arsenic “a strategical realignment to amended absorption our resources,” and pointed to “broad macroeconomic challenges, and crypto marketplace volatility” arsenic different factors contributing to its displacement successful strategy.

It said the marketplace conditions had boosted request for its merchandise and lawsuit assets nether custody "are astatine an all-time high," but added:

"These aforesaid macroeconomic, market, and regulatory dynamics are creating headwinds for our concern and the crypto industry.”

Anchorage — which became the archetypal U.S.-based crypto steadfast to beryllium granted a nationalist spot slope charter from the Office of the Comptroller of the Currency successful January 2021 — expressed continued assurance successful the integer plus scenery and its quality to physique “regulated solutions for integer plus holders.”

The layoffs travel astatine a clip erstwhile the banking strategy successful the U.S. is successful a authorities of disarray aft 3 determination banks went nether successful conscionable 1 week.

Related: Banks collapsing; stablecoins depegging — What is happening? Watch The Market Report live

Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank person each gone nether since March 8, prompting the Federal Deposit Insurance Corporation (FDIC) to instrumentality the bonzer measurement of guaranteeing each lawsuit deposits successful excess of the modular $250,000 it usually guarantees for SVB and Signature.

@federalreserve @USTreasury @FDICgov contented connection connected actions to support the U.S. system by strengthening nationalist assurance successful our banking system, ensuring depositors' savings stay safe: https://t.co/YISeTdFPrO

— Federal Reserve (@federalreserve) March 12, 2023

It’s unclear if the caller developments regarding SVB, Signature, and Silvergate contributed to Anchorage’s determination to chopped staff.

Anchorage did not instantly respond to Cointelegraph’s petition for comment.

Layoffs wrong the crypto manufacture person considerably slowed since the opening of the twelvemonth aft the astir 3,000 positions chopped by crypto firms specified arsenic crypto exchanges Coinbase and crypto.com successful January were followed by a much muted 570 layoffs for February.