Amidst the continued downturn of the cryptocurrency market, Indian crypto exchange CoinDCX is parting ways with 12% of its workforce. The prolonged bear market has led to a difficult situation for the exchange, resulting in the loss of jobs for 71 employees out of a total staff of around 590.
This development occurs against the backdrop of India’s stringent taxation policies on cryptocurrencies. Cryptocurrency profits are subject to a 30% tax, and there’s also a controversial provision involving a 1% tax deducted at source (TDS) on all transactions.
The founders, Neeraj Khandelwal and Sumit Gupta, detailed the shift in CoinDCX’s direction through an official announcement on the company’s website. They explained that roles that no longer align with the current business priorities are being eliminated, impacting several teams within the organization.
Acknowledging the challenging market circumstances, the founders stated, “Startups and businesses globally are facing challenging times due to tough macro conditions, particularly in the crypto space due to the prolonged bear market and the impact of TDS on domestic exchanges. These factors have significantly affected our trading volumes and subsequently our revenues.”
In response to the trying situation, the exchange has undertaken proactive measures including cost optimization and investment in automation to enhance efficiency and productivity. The exchange’s initiatives and products have also been reevaluated and reprioritized to align with its long-term business strategy.
The recent downsizing aims to position the company as a “healthier business” moving forward, given the necessity for a more streamlined team structure in the current circumstances.
The stringent tax regulations enforced by the Indian government have made it difficult for crypto exchanges in the country to turn a profit. The bearish sentiment prevailing in the global crypto market has compounded the challenges faced by these exchanges.
Data from 2023 indicates that crypto activity in India has continued to decline this year. Citizens have transferred over $3.8 billion in trading volume from local to international crypto exchanges.
Despite the challenges, the founders emphasized CoinDCX’s commitment to the Indian market and their mission to drive crypto and web3 adoption to 50 million people by 2025. They stated that their optimism for the Indian market remains strong and reiterated their dedication to fostering a digital ecosystem characterized by openness, inclusivity, and fairness.
Reassuring its customers, CoinDCX, as one of India’s prominent crypto exchanges, affirmed its ongoing commitment to delivering a satisfactory service. The announcement also indicated that there are no further team reductions planned.
