Cryptocurrency exchange KuCoin, which has over 20 million customers, has announced that it would suspend its Bitcoin and Litecoin mining pools from August 15.
KuCoin temporarily suspends its Bitcoin and Litecoin mining pools
In an August 2 announcement, KuCoin informed that it would suspend temporarily its pool service from August 15, 2023 at 4:00 p.m. (UTC)until further updates are released.
The suspension of the KuCoin Pool comes shortly before its second anniversary. The ultimate goal of this service was to become one of the largest mining pools of proof of work on a global level, in order to strengthen the security of various public chains.
Despite offering Bitcoin and Litecoin mining services, the pool was recognized as one of the top performers in the industry. Currently, KuCoin’s Bitcoin mining pool shows a hashrate of 8.31 EH/s and 3.32 TH/s for Litecoin. This rate testifies to the computing power that the pool contributes to securing the network.
During the interim period, users will have secure access and full control over their assets. Other services offered by KuCoin will continue without interruption.
With this directive, Bitcoin and Litecoin miners should explore alternative pools before the deadline. At the same time, all customers must back up and retain essential records by August 27, 2023 (UTC).
A link with the next Litecoin halving?
The exchange said the move was “in line with KuCoin’s evolving business strategy”, but did not give further details about it. It is not clear if this decision is related to the upcoming Litecoin (LTC) halving which is approaching. KuCoin staff wrote:
“To ensure uninterrupted revenue during our temporary suspension, we recommend users involved in cryptocurrency mining transfer their BTC and LTC miners to other alternative mining pools by 4:00 p.m. on August 15, 2023 (UTC).”
The Litecoin halving, which is an event scheduled every four years, has a significant impact on the reward given to miners for each mined block. It is therefore possible that this suspension is related to KuCoin’s preparations to manage the implications of this major event in the Litecoin network.
KuCoin: Clarification on job cuts and new KYC requirements
KuCoin is now preparing the elimination of 30% of its staff. However, the exchange denied this information, saying that it had not initiated a redundancy plan.
Johnny Lyu, CEO of KuCoin, said:
“First, KuCoin is running smoothly. Our recent report for the first half of 2023 shows strong growth in user numbers and new listings, and our talented team continues to grow.”
Since July, the exchange has implemented mandatory Know Your Customer (KYC) requirements for its users. Existing customers will be prevented from depositing funds until they complete the KYC process. The exchange claims over 20 million registered accounts.
The temporary suspension of Bitcoin and Litecoin mining pools by KuCoin can be interpreted as a response to regulatory changes and market challenges. This strategic move could be a way for the exchange to stay competitive and adapt to an ever-changing environment.