- September 1, 2023
- Posted by: [email protected]
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Indian cryptocurrency exchanges CoinSwitch and CoinDCX have recently taken steps to trim their workforce in response to extended bear market conditions and the imposition of a 1% tax deducted at source (TDS) on local crypto exchanges.
CoinSwitch, one of India’s prominent crypto trading platforms, recently downsized its staff, reportedly letting go of 44 employees from its customer support division in August. The company cited the redundancy in roles due to the bear market, which resulted in fewer customer queries. CoinSwitch emphasized its ongoing commitment to innovation, value, and customer service. The impacted support team members were reported to have voluntarily resigned from their positions following discussions with their managers. These layoffs represent approximately 8% of CoinSwitch’s total workforce, which stands at 519 employees, according to the company’s LinkedIn page.
CoinDCX, another major local exchange, also reduced its workforce by around 12% in response to market challenges. CoinDCX’s co-founders noted that the 1% TDS and other factors had significantly impacted their volumes and revenues. To adapt to these challenges, the exchange implemented various measures, including cost optimization and automation investments, to enhance efficiency and productivity. The affected CoinDCX employees were promised a support package that includes severance pay equivalent to the full notice period, an additional month of salary, extended health insurance, and other forms of assistance.
These staff reductions come as India faces a challenging regulatory landscape for cryptocurrencies. In 2022, India imposed a 30% tax on crypto gains, leading to the departure of many cryptocurrency service providers and a decline in crypto trading activity. The 1% TDS, which mandates that crypto exchanges deduct 1% on all crypto asset transfers, has further added to the challenges faced by local crypto exchanges.
Both CoinSwitch and CoinDCX have had to make tough decisions in response to these market challenges, emphasizing the need for adaptability and efficiency in India’s evolving crypto industry.
