- The largest exchange in Brazil, Mercado Bitcoin is facing a second round of layoffs and this time they will lay off 15 percent of their employees, which represents approximately 100 workers.
- The first round of layoffs last June had to lay off 12 percent of its employees, which translates to approximately 90 workers.
The environment of digital assets continues to go through a bad patch, since despite some good news, the truth is that theThe effects of the crypto winter continue to be felt in various companies, thus reducing their work capacity or forcing them to restructure themselves in favor of survival.
The most recent case of consortiums affected by this bearish season is the crypto company bitcoin market. The largest digital currency exchange holding company in Brazil by valuation, recently unveiled that he had to see himself in the painful need to once again thank part of his workforce, the lay off 15 percent of its employees, which represents approximately 100 workers.
“The challenges imposed by the global economy have been affecting innovation segments around the world,” a spokesman for 2TM Group pointed out to the specialized portal Decrypt. “In addition to the portfolio reorganization and cost optimization, we had to reduce approximately 15% of our staff“.
The company also stated in a statement that “economic adversity continues”.
This is the second round of layoffs this summer for the firm, as last June it had to lay off 12 percent of its 750 employees, which translates to approximately 90 workers, quoting “changes in the global financial landscape“.
“The scenario requires adjustments that go beyond the reduction of operating expenses, and it is also necessary to lay off part of our employees.”, he pointed out at that time through a statement the signature.
Unequal competition and crypto law in Brazil
The same way, The consortium emphasized the existence of “unbalanced competition” in which foreign exchange houses simply do not follow the same information and know-your-customer (KYC) standards as national firms, which translates into an unequal match. in the absence of a legal framework for digital assets in Brazil.
“The competitive environment remains deteriorated and unfair, without the approval of the legal framework for crypto activities, since players who comply with the law are sanctioned by companies that ignore local regulations”, said 2TM.
It should be noted that Brazil does not yet have legislation to regulate digital currencies, which is why there is currently a very unbalanced game between domestic and foreign crypto firms.
In this regard, the country’s Chamber of Deputies still has in the pipeline the vote for a cryptocurrency bill, which has already been approved by the local Senate last April.
National companies such as ABCripto have begun to organize to ask for the law to be approved,in addition to other measures, such as the request to the Chamber of Deputies to require exchanges that already have an employer identification number to apply for a license in Brazil.
Although this may be a good measure, foreign companies such as Binance are adamantly opposed to carrying it out.
Crypto winter hits companies in LATAM
It should be noted that other crypto firms located in Latin America have also been hit hard by the cold wave of the crypto winter, which is why they also had to announce a series of layoffs.
Among those affected is the Bitso exchange, Mercado Bitcoin’s main competitor in Brazil, and Argentina-based exchange Buenbit, which cut 45% of its staff.
“We deeply regret the loss of each professional. To minimize the impact, we will offer a package to those who leave us, ranging from extended health insurance and childcare support to relocation assistance.” the company said.
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