KuCoin CEO Denies Layoff Rumors
KuCoin’s CEO, Johnny Lyu, has refuted recent reports claiming that the cryptocurrency exchange would lay off 30% of its workforce, amounting to around 300 employees. In a tweet on July 25, Lyu addressed the speculations and assured the public that KuCoin continues to operate smoothly. However, he acknowledged the potential for future adjustments to staff as part of regular performance evaluations to stay competitive in the evolving crypto sector.
2/ First things first, KuCoin is operating smoothly. Our recent H1 2023 report shows strong growth in users and new listings, and our talented team is expanding steadily.
— Johnny_KuCoin (@lyu_johnny) July 25, 2023
KYC Policies and Legal Challenges
The layoff rumors originated from independent journalist Wu Blockchain, who alleged that KuCoin planned to cut its workforce due to strict know-your-customer (KYC) policies affecting the company’s profits. These policy changes were introduced following legal challenges, including a lawsuit filed by the New York Attorney General, accusing the exchange of violating securities and commodities laws.
After CEO Lyu clarified that any staff adjustments were part of routine performance evaluations, Wu Blockchain retracted the claims. However, specific details regarding the number of employees affected or the positions impacted were not disclosed by KuCoin.
Presently, KuCoin employs around 1,000 individuals globally, and according to Lyu, this number is steadily increasing. The exchange currently ranks 11th in “trust score” among other platforms and has reported a trading volume of $327 million in the last 24 hours, as per CoinGecko data.
KuCoin responded that it is a normal performance appraisal. KuCoin is actively embracing compliance and focusing on core business development.
— Wu Blockchain (@WuBlockchain) July 25, 2023
KuCoin’s Compliance Focus
KuCoin implemented changes to its KYC policy on July 15, requiring newly registered users to complete the verification process to access the exchange’s products and services fully. Failure to comply with KYC requirements led to restrictions on account activities, limiting certain functions like spot trading and withdrawals without KYC completion.
Lyu’s denial of the layoff rumors provides some reassurance to KuCoin’s employees and users, indicating the company’s commitment to its workforce while navigating regulatory challenges. As the cryptocurrency landscape evolves, KuCoin’s emphasis on compliance and performance evaluations demonstrates its determination to adapt and maintain a competitive edge in the highly dynamic crypto industry.
