Seychelles-headquartered crypto exchange KuCoin has dismissed layoffs speculations that the newly implemented know your customer (KYC) is eroding its profits, leaving layoffs inevitable.
KuCoin disapproved the argument circulating since Tuesday, July 25, that it plans to reduce its headcount significantly.
KuCoin Terms Job Cuts a Normal Housekeeping Activity
Instead, KuCoin dismissed the layoff claims, indicating that the forthcoming headcount adjustments amount to a housekeeping activity.
Kucoin spokesperson ruled out initiating the alleged layoff plan. Instead, it constitutes the normal part of organizational development. The executive clarified that KuCoin does its biannual appraisals in response to the fierce competition in the market.
KuCoin did not dispute it was mulling reducing s9me staff. Nonetheless, the chief executive Johnny Lyu expressed concerns that speculation that normal reevaluation of the headcount was a hyped layoff.
Blockchain’s Wu Reports KuCoin Set to Enforce 30% Layoff
Blockchain’s Collin Wu tweeted on Tuesday, July 25, that KuCoin would reduce its staff by 30%, translating to 1000 employees. He added that several victims confirmed the decision to let go of the employees. He attributed the layoff to the move by KuCoin to deploy a strict know-your-customer (KYC) policy. Its use has eroded the firm’s profits.
Wu observed that the KYC policy implementation came after the US initiated a lawsuit against the exchange. He noted that New York Attorney General Letitia James preferred a lawsuit in March alleging that KuCoin contravened the securities and commodities laws.
KuCoin Dismisses Speculation of Headcount Reduction
Wu observed that KuCoin replicates the Binance crypto exchange to lay off its workforce. Lyu disapproved of the allegations shared across Twitter. The executive dismissed the state, terming it as rumors floated around. Lyu indicated that evaluating the KuCoin’s structure is inevitable for it to stay competitive.
Lyu emphasized the evaluation targets employee performance and organization development. As such, it involves making KuCoin dynamic and more competitive.
Lyu revisited a report previously issued by KuCoin in early July to illustrate the Seychelles-based exchange growth. In particular, the report revealed 300 new employees by June 2023.
KuCoin Reorganizing Organizational Structure and KYC Policy
The report indicated that the crypto exchange was adjusting its KYC practices. KuCoin projected to upgrade the KYC authentication systems to optimize user asset security. Its completion would ensure KuCoin complies with the global requirements in delivering a safe trading environment.
The move by KuCoin to deploy a stringent KYC is paying off as it ranks fifth in trust score, preceded only by Binance, Coinbase, Bybit, and OKX. A review of its activity per CoinGecko data shows it realized $418 million daily trading volume. Also, its monthly visits edge closer as it received 9.77 million visitors.
The changes introduced under the adjusted KYC policy became effective on July 15. It mandates newly registered users to furnish their details to access the exchange’s products and services.
KuCoin indicated that registered users who failed to complete the KYC process had their accounts restricted. The deadline lapse triggered the limits, thus denying them access to spot trading and deposit services. The revised KYC policy does not obligate registered users to complete the new withdrawal process.
KuCoin Defies Speculations to Sustain Momentum in Core Businesses
KuCoin realized a surge in its trading volume to $6.8 billion 24 hours after the announcement to update the KYC policy. CoinGecko whos that the daily volume rose from daily transaction volume averaging $500 million. The uptrend replicated the trading volume increase that surpassed $1 billion a day before the KYC policy change became effective.
Lyu tweeted that Kucoin would sustain its momentum to embrace changes witnessed within the digital assets industry. He confirmed the smooth operations at KuCoin. He assured that KuCoin would continue investing within the core businesses and delivering a top-notch experience to users.
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