Crypto exchange KuCoin has denied rumors of an alleged layoff plan, according to an email statement sent to CryptoSlate on July 25. The denial comes after a report by Wu Blockchain, which cited three unnamed internal employees claiming that KuCoin was planning to lay off 30% of its workforce. The report attributed the exchange’s decision to a decline in profits resulting from the strict Know-your-customer (KYC) policy it implemented following a lawsuit by New York’s Attorney General, Letitia James.

Clarification from KuCoin

In response to the rumors, KuCoin’s CEO, Johnny Lyu, clarified that the company might make some personnel adjustments as part of its business development strategy and semi-annual employee performance review. Lyu emphasized that such adjustments are normal in any organizational development process. He further stated that the company regularly evaluates its organizational structure based on employee performance and company growth. According to Lyu, these adjustments aim to make the organization more dynamic and competitive.

Embracing Regulatory Requirements

Lyu reiterated his statement on Twitter, highlighting that KuCoin is actively embracing regulatory requirements and focusing on core business development. He reassured users that the personnel adjustments are not layoffs but rather a means to enhance the organization’s effectiveness and competitiveness. Lyu emphasized the company’s commitment to increasing investment in its core business to improve service quality and enhance user experience.

KuCoin’s Position in the Crypto Industry

KuCoin is recognized as one of the largest cryptocurrency exchanges in the industry, boasting 29 million registered users as of June. The platform’s trading volume over the past 24 hours amounted to $345.19 million, according to CoinMarketCap data. Despite the challenges posed by the strict KYC policy and the subsequent decline in profits, KuCoin remains dedicated to its business development and ensuring compliance with regulatory requirements.

In summary, KuCoin has denied rumors of a layoff plan, clarifying that any personnel adjustments are part of its business development strategy and routine performance evaluations. The company remains focused on embracing regulatory requirements and enhancing its core business to provide high-quality services and an improved user experience. As one of the leading cryptocurrency exchanges, KuCoin continues to play a significant role in the industry.

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