"Don't panic everyone, there must be a reason for Kucoin to act like that."
Recently, cryptocurrency exchange Kucoin reportedly cut 30% of their employees due to its new Know Your Customer (KYC) policy which is said to be very complicated, said Chinese journalist Colin Wu.
There is no denying that KYC is intended to protect users from various financial crimes, but the new policy applied by Kucoin has affected the profits of its exchange.
While there has been no official announcement, Seychelles-based Kucoin which has made the same move as Binance has said that the shutdown is purely a normal performance evaluation.
Kucoin added that his team from today will actively accept compliance including focusing on business development so that its services can be further developed globally.
However, Kucoin vehemently denied rumors of such layoffs stating that the team actually intends to increase staff by 30% and not the other way around.
So far, KuCoin Token (KCS) price has surged by 2.36% at $5.90 in the last 24 hours with a market capitalization of $571 million but still recorded a 4.29% decline over the last week.
On the other hand, Binance was also found to have laid off some of its employees in preparation for a long legal battle with the Securities and Exchange Commission (SEC) of the United States (US).
