Cryptocurrency alternate KuCoin dismissed claims on Tuesday that the Seychelles-based agency has important layoffs deliberate, describing any changes to its headcount as a matter of housekeeping.
“We didn’t provoke any alleged layoff plan,” a spokesperson for KuCoin informed Decrypt. “As a part of a traditional strategy of group growth, we hold doing biannual value determinations to maintain up with the aggressive market.”
KuCoin didn’t deny it’s within the strategy of pink-slipping some employees, however the alternate’s CEO Johnny Lyu took problem with describing a reevaluation of its headcount as layoffs.
Colin Wu of Wu Blockchain reported earlier on Twitter that KuCoin plans to chop 30% of its almost 1,000 staff. Claiming the measure was confirmed by a number of KuCoin staff, he mentioned the alleged cuts have been attributable to a strict know-your-customer (KYC) coverage that reduce into the agency’s earnings.
Wu mentioned the KYC coverage was instituted after the alternate was sued by the U.S.. In March, New York Lawyer Basic Letitia James accused KuCoin of violating securities and commodities legal guidelines in a lawsuit.
Lyu pushed again towards the agency’s allegedly embattled state on Twitter, describing chatter as “some rumors floating round.”
“To remain on prime, we often consider our org construction primarily based on worker efficiency and firm growth,” he mentioned. “So it’s not layoffs, and it’s all about making the group extra dynamic and aggressive.”
Lyu pointed to a report agency KuCoin issued earlier this month as proof the alternate continues to develop, which talked about the alternate added 300 new staff within the first half of this 12 months. The report additionally mentioned KuCoin is altering its KYC practices.
“KuCoin can also be upgrading KYC authentication programs to prioritize person asset safety, adjust to international compliance necessities, and create a safer buying and selling surroundings,” the report mentioned.
KuCoin ranks eleventh amongst different platforms by “belief rating,” in line with CoinGecko. It notched $327 million in buying and selling quantity over the previous day.
Latest adjustments to KuCoin’s KYC coverage—which took impact on July 15—required newly registered customers to finish its KYC course of to make use of the alternate’s services.
Registered customers who had not accomplished KuCoin’s KYC course of by the deadline noticed restrictions positioned on their accounts, limiting them to sure actions like spot buying and selling and stopping them from utilizing the agency’s deposit providers. The up to date KYC coverage didn’t require registered customers to finish KuCoin’s KYC course of as a way to withdraw funds.
A day after the alternate introduced an replace to its KYC coverage, buying and selling quantity on KuCoin spiked to $6.8 billion from almost $500 million the day earlier than, in line with CoinGecko. The one different time KuCoin’s buying and selling quantity eclipsed $1 billion previously month was the day earlier than its KYC coverage change took impact.
On Twitter, Lyu mentioned the agency continues to maintain tempo with adjustments within the digital property trade, and its dedication to customers hasn’t wavered.
“KuCoin is working easily,” he mentioned. “We’ll hold investing in our core companies and offering our customers with the top-notch expertise we promised.”
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