The exchange stated, “We sincerely apologize for any inconvenience this may have caused and we remain grateful for your unwavering support and understanding.”
The Bitcoin and Litecoin mining pools of KuCoin, a well-known cryptocurrency exchange, will be shut down starting at 16:00 UTC on August 15th 2023, until further notice. Although the exchange stated that the choice was made as part of its growing business strategy, no particular justifications were given.
Before the suspension, users that mine cryptocurrencies were asked to migrate to alternate mining pools to secure ongoing profits. KuCoin also encouraged users to back up and save their information before August 27 in order to protect their mining logs and related data.
Unclear Connection to Litecoin Halving
Some people think that KuCoin’s decision may have something to do with the imminent Litecoin halving on August 2. However, no clear connection to the halving event was made in the exchange. The current hash rates for KuCoin’s Bitcoin and Litecoin mining pools are 9.08 exahashes per second (EH/s) and 3.90 terrahashes per second (TH/s), respectively.
The impact of the suspension is still unclear given that Litecoin’s hash rate is 792.16 TH/s and Bitcoin’s network-wide hash rate is 349.19 EH/s.
KuCoin Addresses Layoff Rumors and Implements KYC Requirements
In response to rumors that KuCoin may be planning a 30% personnel cut, the exchange’s CEO, Johnny Lyu, refuted any intentions for layoffs and insisted that the site is now functioning without any issues. However, the exchange has made Know Your Customer (KYC) procedures for its users essential.
SCOOP: Following Binance, cryptocurrency exchange KuCoin will lay off 30% of its workforce. Confirmed by more than three internal employees. KuCoin has nearly 1,000 employees. The main reason is that the strict KYC policy was launched after being sued by the United States, which…
— Wu Blockchain (@WuBlockchain) July 25, 2023
Related: KuCoin to Implement Mandatory KYC for All Users Starting July 15
For existing customers to continue making deposits on the platform, KYC requirements must be completed. KuCoin continues to develop and cites strong increase in users and new listings in its H1 2023 report. There are currently over 20 million registered accounts on the platform.