Indian Crypto Exchanges Lay off Staff Amidst Tough Market Conditions
- Indian crypto exchanges have seen reduced revenue due to the bear market and tough tax policies.
- Last year, the Indian government placed a 1% tax deducted at source (TDS) on all transactions as well as a 30% tax on cryptocurrency revenues.
Amidst what has been a tough market for Indian crypto platforms, crypto exchange CoinSwitch has reportedly laid off its workforce to reduce operating costs. The crypto trading platform fired 44 staff from its customer care section in August, citing job redundancy as a result of the bear market.
CoinSwitch said in a statement:
We continuously evaluate our business to stay competitive, prioritizing innovation, value, and service for our customers. To that end, we right-sized our customer support team to align with the present volume of customer queries on our platform.
A spokesperson noted that the recent job losses, which took place roughly three weeks ago, represent slightly under 7% of CoinSwitch’s overall staff. The crypto exchange had previously employed 60 new staff in April, bringing its workforce to over 600.
CoinSwitch, like many Indian crypto firms, has had to adapt to a difficult and changing environment. CoinSwitch’s rival CoinDCX reduced its workforce by around 12% earlier this month, firing 71 people to cope with the harsh effects of the bear market and India’s tax laws, which have lowered trading volumes and, consequently, revenue.
India has placed high taxes on cryptocurrencies, including a disputed 1% tax deducted at source (TDS) on all transactions as well as a 30% tax on cryptocurrency revenues.
The CoinDCX founders wrote that “these factors had a significant impact on our volumes and thus revenues. To adapt, we undertook several proactive measures, including direct cost optimization and investment in automation to drive efficiency and productivity.”
CoinDCX noted that the affected CoinDCX employees were given an assistance package that included severance pay equal to the entire notice period, an extra month’s salary, and other support.
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