Shapeshift noted that “the imposition of the KYC rules” caused damage to the company

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Platform for immediate exchange of digital assets ShapeShift had to lay off a third of his command due to a serious fall of the stock market, and also because of an abundance of caution in “challenging regulatory environment”.

CEO Erik Voorhees said that with great regret that the company had to lay off 37 of its staff, which amounted to almost one-third of his team. Such decline was due to go in last time many cryptomerias, which is especially apparent during the last cycle of the bear market.

The company said that at this period and make the analysis of their mistakes in order to learn a lesson for the future and hope that ShapeShift successful period cryptogamy.

According to the CEO, the company’s problems, which led to the dismissal of the people, was structural, legal, financial and associated with a decrease in the number of customers.

KYC affected financially and psychologically

Shapeshift is not the first company to feel the negative effects of the prolonged bear market in 2018. Last month, industry giant Bitmain fired the entire development team, the Bitcoin Cash.

One of the reasons why ShapeShift has reached such a level when she had to fire people, according to its General Manager, connected with a pass KYC and registration accounts. Instant online exchange introduced mandatory verification KYC in September 2018, which caused negative reactions from some users.

Vorhes said:

“Business has problems not only from the General downturn of the market and competition, but also from the imposition of fulfillment of requirements of KYC, which has led many of our valued partners to leave to your competitors who are not so scrupulous in respect to the requirements of the regulator. We expected similar problems, and yet it hit hard on us, both financially and psychologically”.

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Tags: ShapeShift

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