BENGALURU – Cryptocurrency exchange Kraken said on Wednesday that it will cut its global workforce by 30 per cent, or about 1,100 employees, citing tough market conditions that have crippled demand for digital assets in 2022.

Higher interest rates and worries of an economic downturn have roiled cryptocurrencies as investors flee risky assets, with recent bankruptcies adding to the uncertainty.

“Since the start of this year, macroeconomic and geopolitical factors have weighed on financial markets,” the company said.

Kraken said it has seen a drop in trading volumes and fewer client sign-ups, adding that the layoffs will take its total headcount to where it was 12 months ago.

In November, crypto exchange Coinbase Global slashed jobs in its recruiting and institutional onboarding teams.

Kraken, which earlier slowed hiring and pulled back marketing spending, said it is forced to cut jobs as it has exhausted other measures to bring its expenses in line with current demand.

Meanwhile, the implosion of crypto exchange FTX, the highest-profile casualty of 2022’s market turmoil, continues to ripple across the industry, with BlockFi filing for bankruptcy earlier this week.

The meltdown has dragged the price of the largest cryptocurrency, Bitcoin, to around a two-year low.

Global regulators have since been circling crypto companies, with many seeking to set tough rules to govern the largely unregulated sector. REUTERS