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It has been reported by Coindesk that prolific crypto startup Circle, which owns the Poloniex exchange and created the USDC stablecoin with Coinbase, has announced that it has layed off 30 employees, or about 10% of its staff, citing the market and current regulatory situations within the United States as a cause.
This comes shortly after the company announced it will be "geofencing" certain assets on Poloniex due to the regulatory conditions in America, namely the uncertainty around what crypto assets are and are not securities. The tightening regulations, along with the long term bear market only now clearing, has led to a need for Circle to cut costs.
Circle CEO Jeremy Allaire is quoted in the article:
"We made these changes in response to new market conditions, most importantly, an increasingly restrictive regulatory climate in the United States... Circle remains strong and healthy, and we will continue to drive new product innovation and growth globally, working with jurisdictions that offer forward-looking policies regulating digital asset businesses, while we press for more balanced crypto policy in the U.S."
It appears the majority of the cuts are happening at the Boston headquarters, though some cuts have also affected the New York offices. In addition to layoffs in the finance and product departments, some unfilled positions were simply eliminated.
Is this just a healthy restructuring so the company can move forward? Or does it signal deeper issues still to come? Stick with Chepicap for any and all updates!
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