Cryptocurrency exchange KuCoin has responded to recent rumors about mass layoffs within the company, clarifying that the adjustments to its headcount are part of routine organizational development.
CEO Claims “Organizational Development”A spokesperson for KuCoin dismissed the layoff claims, stating that the company has not initiated any “alleged layoff plan.” Instead, they claimed, the company is merely conducting its regular biannual appraisals to stay competitive in the market.
While the exchange did not deny some staff changes, CEO Johnny Lyu emphasized that these should not be described as layoffs. Instead, Lyu referred to it as a reevaluation of the organizational structure aimed at enhancing the company's dynamism and competitiveness. He addressed the rumors on Twitter, referring to them as rumors and speculations.
He tweeted,
“The crypto world changes fast. To stay on top, we regularly evaluate our org structure based on employee performance and company development. So it is not layoffs, and it is all about making the organization more dynamic and competitive.”
The industry has been no stranger to an overwhelming number of layoffs from leading crypto companies. Just in 2023, Binance.US, Crypto.com, and Gemini have had to lay off significant portions of their workforce to counter the unstable macroeconomic conditions in the market.
The talk of trouble at KuCoin stemmed from a report by Colin Wu of Wu Blockchain on Twitter. He claimed that KuCoin planned to cut 30% of its approximately 1,000 employees, attributing the alleged cuts to a strict know-your-customer (KYC) policy that impacted the firm's profits. The KYC policy was implemented after KuCoin faced a lawsuit from New York Attorney General Letitia James, who accused the exchange of violating securities and commodities laws.
KuCoin Revises KYC ProcessIn response to these accusations, KuCoin cited a recent report highlighting the company's growth. The report mentioned that the exchange had added 300 new employees in the first half of the year and also acknowledged the ongoing changes to the KYC practices. The updated policy, which took effect on July 15, required newly registered users to complete the KYC process to access the exchange's products and services.
Users who had not completed the process by the deadline faced restrictions on their accounts, limiting certain activities like spot trading, but they could still withdraw funds. Following the announcement of the updated KYC policy, KuCoin experienced a substantial spike in trading volume, reaching $6.8 billion from nearly $500 million the previous day.
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