Litecoin (LTC) and Bitcoin (BTC) mining pools will no longer be supported as of August 15, 2023, according to a decision made by KuCoin. Before August 27, 2023, users of the platform have been asked to retain and back up their mining records in light of the impending suspension.
Cryptocurrency Exchange KuCoin Announces Temporary Suspension of BTC and LTC Mining Pools
The exchange made it clear that this action is consistent with the company’s evolving business strategy and is intended to reallocate resources to core business operations, improve the user experience, and ensure the platform’s long-term viability. Users of KuCoin mining pools are therefore urged to switch their miners to alternate pools prior to the suspension date.
Important to note is that other KuCoin services, such as its exchange operations, will not be impacted by the temporary suspension of mining pool operations. The exchange has reassured its user base that during the suspension time, the platform will continue to provide users with a safe and secure environment for their assets.
The Reason Behind the Suspension
Shortly after KuCoin denied rumors of potential layoff plans, this decision was made. CEO Johnny Lyu noted that the company is going through reorganization in order to keep its competitive edge and adapt to the fast-moving cryptocurrency industry.
The suspension of mining pool operations may be connected to a legal dispute with the New York Attorney General for purported violations of KYC regulations. Due to this, KuCoin has reportedly seen a decline in trading activity and revenue as a result of tightening up its KYC requirements.
Will the Suspension be Temporary?
Users of KuCoin will continue to have full access to and control over their holdings throughout the suspension. To ensure continued revenues, the exchange has advised miners to switch their BTC and LTC miners to alternative pools well in advance of the suspension date.
Although the shutdown of mining pool services has been labeled temporary in Kucoin’s official release, the exchange has not provided a set date for its prospective reinstatement. Instead, it plans to reconsider this choice later after considering user demand and market conditions.
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