India’s CoinDCX cryptocurrency exchange announced on Tuesday that it will lay off 12% of its workforce. A total of 71 staff were affected by the decision. In its official statement, the cryptocurrency exchange stated that India’s TDS (tax deduction at source) relief for every cryptocurrency transaction has slowed down its business, especially during the ongoing bear market. According to CoinDCX, India’s tax policy governing cryptocurrency trading is having a lasting impact on domestic exchanges.
In its statement, CoinDCX said: “Today, we are taking the difficult decision to reduce our team size by approximately 12%.” statement. “As we all know, start-ups and corporates around the world are going through challenging times due to the tough macro environment, especially in the field of cryptocurrencies due to the prolonged bear market and the impact of TDS on domestic exchanges. These factors have had an impact on our sales volume and revenue. had a major impact.”
The Indian Ministry of Finance last year imposed a mandatory 1% TDS on every cryptocurrency transaction, including cryptocurrency purchases, sales, and transfers of cryptocurrencies to digital wallets. The rules are designed to maintain a trail of cryptocurrency transactions, which are largely unregulated and anonymous in nature.
As India is still working on rules to regulate the cryptocurrency industry, Finance Minister Nirmala Sitharaman believes it is necessary to introduce such a rule so that cryptocurrencies are not used for illicit transactions such as money laundering or terrorist financing.
Despite strong calls from crypto community members to amend the TDS rules and reduce the 30% tax on crypto income, the Indian government remains steadfast in its policymaking.
Under market pressure, CoinDCX is now determined to focus on maintaining its finances and operations amid the continued downturn in the cryptocurrency market. Bitcoin is currently trading at a two-month low of $26,000 (roughly Rs 2.1 lakh) on the back of successive U.S. interest rate hikes and other macroeconomic factors.
“We continue to be bullish on the opportunities in India and are committed to our mission to drive cryptocurrency and web3 adoption to 50 million people by 2025. We also want to assure you that no further cuts to the team are planned,” the company said in a statement. stated in the statement.
The exchange said affected employees will be offered severance pay equivalent to a full notice period, an additional month’s salary and other benefits, as well as counseling support.
Gadgets 360 also contacted CoinDCX with a series of questions about the layoffs. This story will be updated with the company’s response.
Meanwhile, members of the Indian Crypto Fraternity delivered words of encouragement to employees affected by CoinDCX’s decision.
For those affected by the layoffs at CoinDCX, keep your spirits high :raised_hands:
Market volatility, regulatory challenges and global stagnation are the drivers.
But there is no doubt that the Indian government’s tough stance on cryptocurrencies has been a key factor, forcing layoffs…
— Kunal Gandhi (@kunalvg) August 22, 2023
Sorry to hear about the layoffs at Coindcx. I hope those affected can stand up as soon as possible. Wishing the team strong during this challenging time.
— Crypto Empire | AMA + Space (@Empire8x) August 22, 2023
Based in Mumbai, Maharashtra, CoinDCX was co-founded in 2018 by Sumit Gupta and Neeraj Khandelwal.
In April last year, CoinDCX received US$135 million (approximately Rs. 11.19 billion) in Series D financing from Pantera, Coinbase Ventures, Kingsway, DraperDragon, Republic Capital, etc., with a valuation of US$2.15 billion (approximately Rs. 178.29 billion). company.
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