KuCoin Crypto Bribe to Cut 30% of Staff
Date: 2023-07-26 Author: Karina Ziganova Categories: BUSINESS
Cryptocurrency exchange KuCoin will lay off 30% of the workforce - about 300 employees. This was reported by Chinese journalist Colin Wu with reference to the company's report.
The document states that the cryptocurrency platform regularly evaluated its structure based on the performance of employees and the development of the company.
The downsizing was confirmed to Wu by at least three employees. The main reason for the mass layoffs is the strict policy of verifying users of the platform. The changes began after the US authorities sued KuCoin, which led to a decrease in the exchange's profits.
Mandatory KYC procedure
Late last month, KuCoin announced the introduction of mandatory Know Your Customer (KYC) identity verification to comply with anti-money laundering (AML) regulations. The requirements have entered into in force on July 15.
Without verification, users of the crypto exchange will not be able to access some products and services. Without KYC, they will also not be able to deposit money, however, withdrawals will remain available. However, services such as orders to sell spot trading, reducing the share of borrowing in futures trading.
Layoffs at the largest crypto exchanges
In mid-July, reporters reported that Binance, the largest crypto exchange, had laid off more than 1,000 employees due to regulatory issues in the US and Europe. The downsizing affected all divisions of Binance, but the customer support service suffered the most. The company is expected to lay off another third of its workers.
In just the past year, dozens of crypto companies have carried out a series of layoffs due to the market situation. Among them were large crypto exchanges. In particular, Coinbase fired over a thousand employees, citing the need to "maintain stability during the economic downturn." In January, the company's management decided to lay off 950 employees (about 18%) in order to save the company's capital.
The Bybit crypto exchange cut its staff twice in 2022. In June, as part of the reorganization of the exchange, from 20% to 30% of the staff was laid off. Then in December, the head of the company, Ben Zhou, announced a new round of layoffs. According to media reports, about 30% of employees lost their jobs.
