In response to the recent crypto market slump and regulatory uncertainties in the U.S., crypto bank Anchorage Digital is significantly cutting down its staff. Bloomberg reports that the company is letting go about 20% of its employment.
Anchorage Digital highlighted a number of concerns in a statement, including the unstable condition of the cryptocurrency market, more general socioeconomic difficulties, and the murky regulatory environment in the US.
“The need for better crypto infrastructure is growing ever clearer. For us, that means focusing resolutely on our status as an unequivocal qualified custodian, among other safe and regulated ways for institutions to participate in the digital asset ecosystem,” said Anchorage’s representative.
The Office of the Comptroller of the Currency asserted in April 2022 that Anchorage’s compliance programme lacked personnel and internal controls, such as money-laundering safeguards, to authenticate customers in 2021.
As a result, the bank was said to have failed implementing the crucial measures to stop money laundering and report fraudulent transactions.
Anchorage Digital, however, revealed in June 2017 that it has connected with Binance.US and secured support from cryptocurrency exchanges CoinList, Blockchain.com, Strix Leviathan, and Wintermute in its quest to establish a custody exchange network.
