Crypto firms are attracting top talents from the traditional financial sector in droves thanks to higher salaries and the prestige of working in the emerging industry.
A Bitget report shared with CryptoSlate showed that one-third of applicants for crypto positions have a background in banking and traditional finance.
“33% of the exchange job applicants previously worked in banking…23% of [these] candidates apply for KYC Manager, Compliance Associate, Senior Compliance Associate, and AML Analyst,” Bitget stated.
The influx of these financial professionals into the crypto space gained momentum within the past year as the value of digital assets surged. This trend was also observed during previous crypto market booms, where seasoned executives and recent graduates moved into the industry.
Industry observers interpret these workforce dynamics as indicative of the maturation of the digital asset sector. Notably, major global banks such as JPMorgan Chase, Barclays, and HSBC are exploring ways to integrate blockchain technology into their services, further underlining the evolution of the financial landscape.
Beyond the banking sector, the crypto industry has witnessed a 180% increase in applications from professionals from diverse sectors.
Why banking talents are attracted to crypto jobs
The exchange attributed the high migration rate to several factors, including high salaries, industry prestige, growth opportunities, and the crypto industry’s flexibility.
Bitget explained that a critical catalyst for this talent departure from traditional banking lies in the salary adjustments banks make in response to remote work conditions. As banks reduce salaries, a brain drain effect has ensued, prompting a reevaluation of hiring strategies and compensation structures within the industry.
In contrast, crypto firms not only offer competitive salaries for equivalent roles but also provide the flexibility of remote work. Notably, 36% of blockchain-related roles worldwide were remote-based in 2022.
For further perspective, junior engineers in banks typically earn around $87,810, while their counterparts in crypto startups command an average of $125,000. Similarly, the average salary offered by crypto firms, $ 115,667, significantly surpasses the $54,000 traditional banks offer.
Gracy Chen, Managing Director at Bitget, characterized the trend as a substantial shift in the labor market.
Chen suggested that as crypto gains momentum and decentralization transforms traditional banking, this shift might catalyze increased mergers and acquisitions, influencing job dynamics and reshaping the overall labor market.