Kucoin, a prominent cryptocurrency exchange, is reportedly planning to downsize its workforce by 30%, according to anonymous sources. While the company has labeled this move as a “normal performance appraisal,” insiders suggest that the layoff is a direct result of Kucoin’s new Know Your Customer (KYC) policy. Chinese reporter Colin Wu, who has been closely following the situation, revealed that three internal employees have confirmed the impending job cuts. These sources claim that the updated KYC measures, which have been made mandatory for users, have adversely affected the company’s profits.
Despite the absence of an official announcement from Kucoin, reports indicate that the Seychelles-based firm has justified the layoff as a “normal performance appraisal” and emphasized its commitment to compliance and core business development. This move aligns with the exchange’s efforts to embrace regulatory requirements and enhance its operational focus.
Interestingly, just a few months ago, in July 2022, Kucoin had denied rumors of job cuts and had expressed its intention to expand its workforce by 30%. However, the recent change in circumstances seems to have necessitated a different course of action.
This development comes at a time when the US arm of rival cryptocurrency exchange Binance has also been forced to lay off employees in preparation for a protracted and costly legal battle with the Securities and Exchange Commission (SEC). The regulatory landscape surrounding cryptocurrencies is becoming increasingly complex, prompting exchanges to reevaluate their operations and compliance measures.
As the crypto industry continues to evolve, it is crucial for exchanges like Kucoin to adapt to changing regulatory requirements while maintaining a focus on sustainable growth. The impact of these job cuts on the company’s future remains to be seen, but it is clear that Kucoin is taking proactive steps to navigate the challenges posed by the evolving regulatory environment.