Binance Pangkas Employee Allowance Imbas Decreased Company Profit

Binance crypto exchange reduces worker allowances. (Photo; Doc. Coincodex)

JAKARTA - The current report comes from the crypto industry that the world's largest crypto exchange, Binance, has cut employee allowances as part of efforts to cut costs in dealing with current market conditions.

Reported by the Wall Street Journal, the cutting of the allowance was carried out in June 2023, in response to the recent decline in profit. Binance is also facing legal challenges in various jurisdictions, including in the United States, with the US Securities and Exchange Commission (SEC) filing a lawsuit against crypto exchanges over alleged violations of securities laws.

According to the report, cutting allowances for employees will take effect on June 19, 2023. The allowances cut include changing cellphones, fitness costs, and working expenses from home, as well as several other items.

However, it should be noted that despite facing these challenges, Binance stated that it is still profitable, as expressed by the company's chief executive, CZ. Despite the situation being faced, Binance continues to seek innovation, as recently, they announced the integration of the Bitcoin Lightning Network, a move that could affect the growth and adoption of crypto further.

Incidents of cutting employee allowances and legal challenges faced by Binance demonstrate the complexity and challenges in the crypto industry. Marketers and observers must continue to monitor these developments to understand how this can affect the crypto ecosystem as a whole.