Kucoin, a popular cryptocurrency exchange, is reportedly planning to downsize its workforce. According to anonymous sources, the company is looking to reduce staff as part of a “normal performance appraisal.” However, the layoffs are said to be a direct result of Kucoin’s new know your customer (KYC) policy.
Chinese reporter Colin Wu, known for his insights into the crypto industry, revealed that Kucoin is expected to let go of 30% of its employees. Wu cited information from three internal sources. The job cuts are believed to be a consequence of the crypto exchange’s updated KYC measures, which have been made mandatory for all users. The sources also claim that the new policy has impacted the company’s profits.
Although Kucoin has not made an official announcement regarding the layoffs, the report states that the Seychelles-based firm has described them as a “normal performance appraisal.” The company emphasized that it is actively embracing compliance and focusing on core business development.
This is not the first time Kucoin has faced rumors of job cuts. In July 2022, the exchange denied such rumors and instead announced plans to increase its staff by 30%. However, the recent reports suggest a different reality for the company.
In a similar vein, Binance, one of Kucoin’s competitors, recently laid off employees from its US arm. The move was seen as a strategic decision in preparation for a legal battle with the Securities and Exchange Commission (SEC), which is expected to be both lengthy and expensive.
As the crypto industry continues to evolve, exchanges like Kucoin are facing increasing regulatory scrutiny. Implementing stricter KYC measures is becoming a common practice among exchanges to ensure compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. However, these measures can also have an impact on a company’s operations and workforce.
It remains to be seen how Kucoin will navigate these challenges and whether the downsizing will have a significant impact on its future growth and development. As the crypto market continues to mature, regulatory compliance will likely play a crucial role in shaping the industry’s landscape.
