As some of the largest crypto companies cut back on their staff during the current crypto winter, there is still demand for staff specialised in legal and compliance skills. With the regulatory environment containing many potential speed bumps, the best staff in this area are being hired with an eye to the future.
Given such harsh conditions in the crypto sector, many companies have made some major staff lay-offs. The likes of Coinbase, and Gemini have each made cut-backs, which even include their compliance staff.
However, according to an article in the Wall Street Journal, such a move in itself carries inherent risk, given the potential upheavals to come as regulatory authorities start to crack the whip.
Will Brown, executive search lead for global recruiter Hamlyn Williams, spoke of how lay-offs can damage allegiance to a company:
“Compliance specialists join a firm for salaries and titles and also for a good compliance culture. If [the firm] got a reputation that they decrease compliance staff when the market gets tough, you would worry about the longevity to join the compliance staff.”
Coinbase stated in June that it would cut its staff by 18%, equating to around 1100 employees. On the company ‘talent hub’, created in order to help staff leaving to get jobs, there were several in the fields of compliance and paralegals among other related positions.
Although the company stated in an email that:
“Coinbase will never compromise on its commitment to security and compliance and continues to hire for security and compliance roles around the world,”
Gemini has already cut 10% of its staff back in June, and among the lay-offs were its director of business operations who was most recently the deputy chief compliance officer, together with the head of risk.
On the other hand, another large crypto exchange Kraken, had posted 112 legal role jobs in June alone. The roles included 24 mid-to-senior-level, and seven director-level positions.
Brian Burlant, who is a legal recruiter at Major, Lindsey and Africa, said that he saw the crypto lay-offs as a response to the downturn in the sector. He advises those seeking legal and compliance roles to look carefully at prospective company business models, and to be careful about which one they choose.
“The smart companies are taking on the people with the best reputation; they have a distinct role to play, to help shape what this regulatory environment looks like in the years to come. Regulators need that input from these people. [The companies] will not step aside; they would want the most important players on their team to have influence.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
