Cryptocurrency 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 fled risky assets, with FTX’s recent bankruptcy 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 total headcount to where it was 12 months ago.

Earlier this month, 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 was forced to cut jobs as it had exhausted other measures to bring expenses in line with current demand.

Meanwhile, the implosion of crypto exchange FTX, the highest-profile casualty of the year’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 firms with many seeking to set tough rules to govern the largely unregulated sector.