- KuCoin is joining other major exchanges in workforce reductions.
- The major cryptocurrency exchange has underperformed for a majority of this year.
- KuCoin has cited several reasons for its downsizing, including its KYC policy.
The crypto industry’s ongoing volatility and regulatory challenges have significantly strained major exchanges, prompting them to reevaluate their strategies to maintain stability. Leading platforms like Binance and Crypto.com have already reduced their workforce, and now KuCoin is following suit to stay afloat amidst dwindling profits.
KuCoin Pulls Back
KuCoin, as reported by blockchain reporter Colin Wu, is the latest major cryptocurrency exchange participating in mass layoffs in 2023. With its profits taking significant hits since the beginning of this year, the company has found itself compelled to weather the storm and take necessary steps to maintain operations.
According to Wu, KuCoin is set to reduce its workforce by a staggering 30%, affecting over 300 employees in the coming weeks. The exchange has cited the implementation of its KYC policy as the primary reason for its downsizing.
KuCoin launched the KYC policy in response to a lawsuit filed by the US government, which notably impacted the exchange’s growth. However, this is not entirely surprising. KYC policies are often met with mixed sentiments in the crypto industry, as many find it invasive and cumbersome. Still, these policies are crucial to ensuring user safety and promoting a more regulated crypto environment.
It’s worth noting that KuCoin, unlike Binance, has been very transparent in its approach, providing valid reasons for its workforce reduction. In contrast, Binance has yet to disclose the reasons behind some of its executives’ departures, apart from its CEO Changpeng “CZ” Zhao’s signature ‘4’ tweet.
On the Flipside
- The US SEC is pressuring exchanges operating in the country to delist tokens the regulator classified as securities in its lawsuit against Coinbase and Binance.
- Following enforcement from the SEC, Kraken also cut its workforce by 30% and shut down its staking service.
- Gemini trimmed its workforce by 10% amid the DCG meltdown.
Why This Matters
KuCoin is one of the leading crypto exchanges in the world. Concerns over the company’s profits and ability to maintain operations can affect the boarded crypto market.
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