Australian exchange 'Banxa' to cut 30% staff citing 'crypto winter'
Australian exchange Banxa
Modified Date:- Published Date:-Categories: Cryptocurrency
Australian exchange 'Banxa' to cut 30% staff citing 'crypto winter'
Australian crypto payments operator Banxa will lay off more than 30% of its global workforce to reduce operating costs amid the ongoing bear market. “Like many others in our industry [we] are anticipating another crypto winter, with trading volumes dropping significantly,” Banxa CEO Holger Arian said in a solemn letter to employees.
“We have seen our market capitalization almost halved in a matter of days, and the forecast is that these conditions are likely to continue for the next 12 months.” Banxa is an international web3 on-and-off ramp solution that facilitates conversion between digital assets (including cryptocurrencies and NFTs) and fiat currencies.
The company's European Managing Director, Jan Lorenc, is also expected to step down, reflecting Banxa's declining interest in the euro market. The company has traded on the Toronto Stock Exchange's early-stage TSX Venture Exchange since January 2021, but its shares have fallen 74 percent over the past 12 months as the crypto and broader tech markets continue to suffer.
According to a spokesperson, Banxa will centralize its operations in the Australian and Philippines markets to better prioritize higher margins and profitability in the face of current industry headwinds.
The jobless crypto queue lengthening
Other major cryptocurrency platforms have also slashed their heads.In mid-June, lending platform BlockFi and major exchange Crypto.com announced they would cut more than 400 jobs between them. Just a day later, Coinbase revealed that it would liquidate 1,100 jobs, or about 18 percent of its total workforce. Gemini and Robinhood also recently rationalized their workforces, making it seem like the cryptocurrency is already upon us.
Cryptocurrency exchanges and cryptocurrency payments platforms throughout the world continue to face harsh criticism from customers and employees, saying the influx of regulation has resulted in layoffs and job cuts.