Indian crypto exchange CoinDCX is bidding farewell to 12% of its staff as the crypto market continues to crunch in the hands of bears. A total of 71 employees would be losing their jobs in a company that has a strength of some 590 employees.
The news comes in the background of India’s stiff imposition of tax on cryptocurrencies. Profits from cryptocurrencies have a 30% tax on them, along with the highly controversial 1% tax deducted at source (TDS) provision on all transactions.
In an official announcement made by the founders, Neeraj Khandelwal and Sumit Gupta, CoinDCX’s new path was laid out on its official webpage. They said that they were letting go of roles that did not fit into its current business priorities. Several teams have been affected due to the same.
Talking about the challenging market conditions, the founders said: “As you all know, 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. These factors had a significant impact on our volumes and thus revenues.”
In order to adapt to this difficult time, the exchange has undertaken several proactive measures, including direct cost optimisation and investment in automation to drive efficiency and productivity. Initiatives and products have also been reprioritised in line with the exchange’s long-term business strategy.
The recent layoff is to further ensure the company becomes a “healthier business way forward” as the current situation demands a more efficient team structure, said the announcement.
Indian crypto exchanges have been struggling to earn profit as the country’s government has been strict with the industry in its tax rules. Bearish sentiments of the global crypto market have only worsened the situation further.
As per the data fetched in 2023, crypto traffic in the nation has continued to nosedive this year. The country’s citizens have also moved more than $3.8 billion in trading volume from local to international crypto exchanges.
Talking about the path ahead for CoinDCX, the founders said that the exchange would remain bullish on India’s opportunity and committed to their mission of driving crypto and web3 adoption to 50 million people by 2025.
They made their commitment clear by saying: “As we look towards the horizon, we’re optimistic about the Indian market and our role in contributing to building the Web3 ecosystem in India and beyond. We stand committed to our mission to accelerate the adoption of crypto and web3 applications, and to usher in a digital realm that epitomizes openness, inclusivity, and fairness – is not just a statement. It’s our commitment to you and the world.”
As one of the leading crypto exchanges in India, CoinDCX then reassured its customers of its continued dedication to deliver a service that would ensure their satisfaction. The announcement also stated that there are no more team reductions planned.