By Manya Saini

(Reuters) – Crypto exchange Kraken said on Wednesday it would cut its global workforce by 30%, or about 1,100 employees, citing tough market conditions that have crippled demand for digital assets this year.

Higher interest rates and worries of an economic downturn have roiled cryptocurrencies as investors dump 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.

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

The implosion of FTX has rippled across the industry, hobbling liquidity at firms with exposure to what was once one of the world’s biggest crypto exchanges.