According to a recent report from The Wall Street Journal, global cryptocurrency exchange Binance has cut various benefits for its employees, including reimbursements for mobile phone use, fitness, and work-from-home expenses.

The company cited the “current market environment and regulatory climate” as the reasons for this change, which has led to lower earnings. This suggests that additional cost reduction measures may be necessary in the future.

A Binance representative indicated that the company may consider reducing certain products, business units, staff benefits, and policies in response to business and regulatory concerns.

Furthermore, Binance is reportedly planning to lay off between 1,500 and 3,000 employees by the end of the year, according to an anonymous source cited by CNBC. This information came to light around the company’s sixth anniversary on July 14, 2023.

Binance is currently facing legal challenges globally. In the United States, both the Securities and Exchange Commission and the Commodity Futures Trading Commission have initiated legal proceedings against the company.

The lawsuits allege that Binance and its CEO, Changpeng Zhao, offered unregistered securities. Binance has characterized these legal actions as an example of regulation by application.

On July 5, 2023, the Australian Securities and Investments Commission (ASIC) conducted a search operation at the Binance Australia headquarters. This investigation into the now-shuttered local derivatives arm of the crypto giant is part of the deal, and highlights the increasing regulatory scrutiny facing Binance.

This follows the decision to stop facilitating PayID AUD deposits by a third-party payment service provider on May 8, 2023.