The cryptocurrency industry has faced various challenges in recent times, including the collapse of FTX, fraud allegations, and the downfall of other prominent companies. These incidents have significantly impacted the reputation of the industry, leading to a growing need for legal and compliance professionals in the crypto sector.
The Importance of Legal and Compliance Experts
Amidst regulatory scrutiny and the tarnished reputation of the industry, hiring experts in compliance has become a daunting task for crypto firms. However, the expertise these professionals bring to the table plays a vital role in rebuilding the sector’s damaged reputation.
“There’s such a stigma to the industry right now,” said Jorge Pesok, responsible for hiring legal team members at the nonprofit HBAR Foundation.
In the past, crypto firms enticed legal and compliance talent with higher salaries, attractive perks such as equity, and opportunities to develop and implement compliance programs. However, the recent crypto market crash has significantly diminished the industry’s ability to attract talent.
Many professionals who were initially drawn to the opportunities in the crypto sphere are now hesitant to make the move or are returning to more stable companies in consulting or mainstream finance. The events of the past year, including layoffs at Coinbase and bankruptcies of major crypto players like BlockFi and Celsius Network, have dampened enthusiasm for the industry.
“In the last nine months or so, a lot of the regulatory pressure hasn’t gone away, a lot of projects are seeing compliance become more business-critical, and we’re seeing more hires because of that,” said Brown.
Hiring Challenges and Strategies
Hiring for compliance positions remains challenging, especially since candidates often opt for positions in traditional financial institutions due to the crypto industry’s challenging reputation. Despite the larger talent pool resulting from layoffs in other companies, attracting compliance professionals is still difficult.
Companies like Paxos Trust have adopted a regulatory-first approach to compliance and a commitment to excellence to attract new staff.
“We are still seeing interest from candidates in joining or remaining in the industry, but players in the market need to adapt and ensure that they offer long-term stability,” said Cathy Yoon, a veteran in the legal roles of the crypto sector.
To overcome the hiring challenges, candidates are conducting more thorough research on companies. They are asking probing questions about internal approval processes, financial oversight, and overall stability within the organization.
While traditional financial technology firms are picking up their hiring efforts to fill vacancies and entice talent back from the crypto industry, it is expected that the pace of crypto compliance hiring will increase in the coming months.
