FalconX Cuts 10% of Staff and Shifts Singapore Strategy Amid Crypto Slump

Digital asset brokerage firm FalconX has reduced its global workforce by approximately 10% as it prepares for a sustained downturn in the cryptocurrency markets. According to reports from Bloomberg on August 3, 2026, the layoffs affected around 35 employees out of a total staff of 350. The restructuring is particularly concentrated in the firm's Singapore office, where roughly half of the personnel—including senior executives and staff in the sales and accounting departments—were let go. This move comes as the institutional prime broker reallocates resources toward high-priority sectors and regulated markets.

Strategic Pivot in Singapore and License Withdrawal

As part of its organizational shift, FalconX is significantly altering its operations in the Singaporean market. Sources familiar with the matter indicate that the company plans to withdraw its license application previously submitted to the Monetary Authority of Singapore (MAS). Instead of pursuing a regulated status for spot digital payment token services, the firm will refocus its local strategy on crypto derivatives trading.

In the current regulatory environment in Singapore, certain institutional derivatives activities may not require the same specific permits as retail-facing spot exchanges, allowing the firm to maintain operations while reducing its compliance burden.

Despite the reduction in headcount and the change in licensing strategy, FalconX intends to maintain its presence in the Asia-Pacific region. This pivot suggests a transition toward a leaner operational model that prioritizes the most capital-efficient business lines.

European Expansion and Institutional Growth

While scaling back in some regions, FalconX is actively expanding its footprint in the European Union. In late June 2026, the company received authorization under the Markets in Crypto-Assets (MiCA) regulation from the Malta Financial Services Authority. This approval allows FalconX to passport its trading, custody, and financing services across all 27 EU member states.

The company’s recent activities include several high-profile moves:

• The acquisition of crypto ETF issuer 21Shares in late 2025.
• The purchase of derivatives startup Arbelos Markets to bolster institutional offerings.
• The acquisition of bloXroute, a provider of blockchain trading and networking technology.
• Continued operation of its US-based subsidiary, FalconX Bravo, which is registered as a swap dealer with the CFTC.

In a written statement, the company emphasized that it is concentrating resources on priority areas to ensure long-term sustainability. This approach mirrors recent trends in the industry, where major players such as Coinbase, Crypto.com, and Gemini have also implemented workforce reductions to navigate the ongoing market slump.

By aligning its global strategy with the unified MiCA framework in Europe and focusing on institutional derivatives, FalconX aims to navigate the "crypto TradFi" sector, which has seen significant growth in tokenized assets and sophisticated financial products over the past year.