Amid reports that crypto journalist Colin Wu claimed Seychelles-based crypto exchange KuCoin was planning mass layoffs – owing to its enforced KYC (Know Your Customer) policy reportedly causing a loss in profits – the company has refuted the reports, stating that routine adjustments would be made contrary to any estimates made of potentially cutting staff by a total of 300 people, or 30%. Back in March the New York Attorney General Letitia James had filed a potential lawsuit because users were allegedly getting granted securities provision on the platform themselves, ineffectively circumventing securities laws.
Essentially, the lack of technological protection measures leading to widespread affluence from the platform put the headlights firmly on KuCoin, causing a dip of 73 % in trading volume when the AG’s claim was announced. Such things as mandatory KYC were enforced on July 15 – as claimed by Colin Wu – and recently the trading volume suffered again to the tune of 54 % according to available data.
Speaking on the matter, KuCoin issued a statement saying it was: “actively embracing compliance and focusing on core business development,” in effort to boost morale and hopefully reverse its recently decreased momentum and profits.
