In the wake of the Silvergate Capital Corp’s collapse, a rush for compliance experts has been triggered among European financial firms catering to cryptocurrency companies, according to a Bloomberg report. The fall of the US-based heavyweights has reportedly created a void that European firms are eagerly filling, causing intensified competition for top compliance staff.
According to the report, companies catering to the crypto sector are now facing a wave of demand for services following the demise of the US giants. Per the report, BCB, a London-based firm, has seen potential client requests double since February, prompting plans to expand its compliance team by 50% in the next five months.
Meanwhile, salary offerings for these positions have seen a significant increase, with new hires in the UK earning between £55,000 and £75,000 annually and chief compliance officers commanding around £200,000 or more at established firms. This marks a 10%-20% increase from previous levels, reflecting the urgency of the situation.
The report continued that, companies are stressing the need to hire candidates with backgrounds in both traditional finance and cryptocurrency. One London firm that is looking for this kind of worker is Fiat Republic. Meanwhile, Lithuania’s Blockbank is looking to hire analytics and anti-money laundering specialists to deal with the company’s rapid expansion. Similarly, UK-based digital merchant banking service Greengage has just hired former Binance executive Lynn McConnell in the role of head of compliance.
The collapse of Silvergate has brought to the fore the crucial role of risk management and compliance in the crypto sector. Silvergate’s failure was primarily attributed to inadequate risk management, notably a high reliance on volatile short-term deposits while extending loans or investments over longer durations.
On the global stage, the International Organization of Securities Commissions (IOSCO) recently proposed a global approach to cryptoasset and digital market regulations. This proposal followed the completion of the world’s first comprehensive crypto regulation rules by the European Union.
