Home » Cryptocurrency hangover casts doubt over firms’ expansion plans in Ireland

Cryptocurrency hangover casts doubt over firms’ expansion plans in Ireland

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This year’s cryptocurrency crash hit companies in the space hard, forcing many to cut costs and cut labor after booming growth.

Reland attracted several major cryptocurrency companies at the time as it aimed to enter the EU market and put its operational boots on the ground by securing a regulatory license.

But the dramatic crash in cryptocurrency values ​​earlier this year has cast doubt on future expansion plans, especially since values ​​have yet to return to their previous highs.

Bitcoin, the world’s largest cryptocurrency, hit $58,000 before falling dramatically in June. It is currently valued at around $19,500 while other cryptocurrencies have met a similar fate.

It is against this background that Gemini, a cryptocurrency exchange led by Cameron and Tyler Winkelvos, announced its official launch in the Irish market earlier this month.

Gemini, which makes money from investors trading and storing crypto assets, laid off staff over the summer in an attempt to contain costs after a downturn.

The New York-based company said it remains committed to its Irish employment plans despite strong headwinds in the crypto space.

A Gemini spokesperson said, “Gemini has built a team in Ireland and continues to hire in key roles and currently has operational, financial, compliance, customer service, legal, technical, product, trade and commercial functions. We are hiring staff for a wide range of roles.”

“The team is working in an integrated way with our Gemini colleagues around the world. Future employment requirements in the market will be in line with growth in Ireland and Europe as we expand across the region. ”

Gemini, which also has a license approved by the Central Bank of Ireland, did not disclose the number of staff in Dublin.

Prior to this year’s rout, several companies in the sector had launched Irish-based recruiting campaigns, but recruitment costs are now a challenge for companies whose business is tied to volatile assets like cryptocurrencies. It is becoming

Binance, the world’s largest cryptocurrency exchange by trading volume, has gradually opened up operations in Ireland over the past two years.

Most recently, he headhunted Carl Long, a former State Street executive.

The company, which is notoriously shy when talking about its corporate structure or the exact location of its headquarters, has registered several entities in Ireland since 2020 and has begun hiring more.

Most recently, they headhunted Carl Long, a former State Street executive, as Managing Director of Ireland, adding a Business Development Manager and a Compliance Officer.

A Binance spokesperson declined to provide an update on the status of the company’s Ireland plans.

While Binance appears to be making headway despite the bleak economic outlook, the activity of other crypto companies in Ireland is less clear.

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Binance founder Zhao Changpeng.Photo: Benjamin Gillett/Bloomberg

Another major cryptocurrency exchange, Crypto.com, has confirmed plans to set up a base in Dublin while pursuing an e-money license from the central bank, and will have a small staff in Ireland from late 2021. I hired you.

The company recently spent a fortune trying to push itself into the mainstream by airing Super Bowl ads with Matt Damon and becoming an official sponsor of the World Cup in Qatar. But that, too, took a hit at the start of the crypto winter, with multiple rounds of job cuts starting mid-year.

Crypto.com declined to comment on whether Ireland was affected.

Kraken, another major cryptocurrency exchange, conducted a recruitment drive in Ireland last year.

The company announced in June that it would add 500 people to its operations, including jobs in Ireland, “despite the plunge in cryptocurrency prices and an uncertain macro environment.”

Blockchain payments company Ripple also began hiring an office in Dublin this year as part of an effort to expand its office footprint globally. Ripple declined to comment on the status of its presence in Dublin.

Prior to these recent arrivals, Dublin had hosted a number of companies that have weathered various crypto recessions over the years.

Coinbase, one of the world’s most prominent cryptocurrency companies, established its Dublin office in 2018 to serve the European market.

The company has obtained a license in Ireland to continue its operations in Europe after Brexit.

In June, Coinbase cut about 1,100 jobs from its global workforce. About seven percent of the staff at the Dublin office have been laid off.

The company has not disclosed how many employees it has in Ireland, but it is believed to have had around 250 at the beginning of the year.

Since opening its offices in Dublin, Coinbase has experienced rapid growth, representing the rapid expansion of the cryptocurrency market.

This was symbolized by Coinbase’s initial public offering on the Nasdaq in early 2021, debuting with a market cap of $85 billion. Its market cap is now just below his $15 billion.

While cryptocurrency companies felt uncomfortable in 2022, traditional financial services have continued to tinker with the technology.

Last week, financial services firm Fidelity Investments announced 300 new jobs in several tech sectors in Dublin and Galway, including software engineering, cloud computing and cybersecurity.

The company has built an internationally significant digital assets division and recently listed roles for its digital assets division in Dublin, including operations analyst and bitcoin client service representative.

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Meanwhile, Standard Chartered’s Zodia Custody, the digital asset management arm that caters to institutional investors, acquired a license for digital assets and crypto services from the Central Bank of Ireland in August.

This is the UK-based company’s first expansion into the European market, with plans to serve the rest of the EU from its new Dublin location.

Only Zodia Custody and Gemini have so far been approved by the Central Bank of Ireland for virtual asset licenses.

Payments company Block, led by Twitter co-founder Jack Dorsey, has applied for a license in Ireland to support its mobile payments app, the Cash App product, in Europe.

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