One of the most well-known cryptocurrency exchanges in India, CoinDCX, is laying off around 12% of its workforce as a result of the prolonged bear market and India’s tax laws, which are hurting earnings.71 employees of the exchange are being let go because their positions don’t align with the company’s current business aims, a company representative said in an interview on Tuesday.About 590 people work for the Mumbai-based business that Neeraj Khandelwal and Sumit Gupta launched in 2018.The job losses had an effect on numerous teams.
A 30% tax on cryptocurrency revenues as well as the more contentious 1% tax deducted at source (TDS) on all transactions starting on February 1, 2022, are among the onerous taxes India has imposed on cryptocurrencies.Trading volumes and revenue have been badly hurt by the TDS in particular and the global bear market in cryptocurrencies, forcing the nation’s crypto exchanges into survival mode.In May, Khandelwal said in an interview that CoinDCX has the funds to sustain itself for four years.
“Startups and businesses globally are going through challenging times due to tough macro conditions, more so in crypto because of the prolonged bear market and impact of TDS on domestic exchanges,” the company said in a statement. “These factors had a significant impact on our volumes and thus revenues … we have made the difficult decision to resize certain teams and to steer the business towards a profitable and sustainable growth.” “Today marked one of the most difficult moments for me and Neeraj in our journey at CoinDCX,” Gupta wrote in a LinkedIn post. “We had to make a tough choice that involved bidding farewell to some of our brilliant and dedicated team members at CoinDCX. We are deeply sorry for this, and we bear its weight, both in responsibility and in emotion.”