CoinDCX, a Major Indian Crypto Exchange, Cuts 12% of Jobs Amid Bear Market and Taxation Challenges
Around 12% of the workforce at CoinDCX, a prominent cryptocurrency exchange in India, is being let go as a result of the extended bear market conditions and the impact of the country's tax regulations on revenue.
The exchange is reducing its staff by 71 employees whose roles no longer align with the company's current business priorities. CoinDCX, headquartered in Mumbai and founded by Neeraj Khandelwal and Sumit Gupta in 2018, currently employs around 590 individuals. Multiple teams within the company have been affected by these job cuts.
India has enforced substantial taxes on cryptocurrencies, including a 30% tax on crypto profits and a controversial 1% tax deduction at source (TDS) on all transactions since February 1, 2022. The introduction of TDS, coupled with the global crypto bear market, has significantly impacted trading volumes and subsequently reduced revenue for the country's crypto exchanges. In response, these exchanges have been forced into a mode of survival. In May, Khandelwal mentioned that CoinDCX had sufficient funds to sustain operations for four years.
In a statement, the company addressed the challenging circumstances faced by startups and businesses worldwide, particularly in the crypto sector due to the enduring bear market and the effects of TDS on domestic exchanges. These factors have directly affected trading volumes and revenues, leading to the decision to resize certain teams to ensure the business's profitability and sustainable growth.
Sumit Gupta shared his thoughts on this tough decision in a LinkedIn post, acknowledging the emotional weight of bidding farewell to dedicated team members. He expressed regret for the situation and the responsibilities it entails.
This step underscores the profound impact of market conditions and regulatory changes on the cryptocurrency industry, prompting exchanges like CoinDCX to adapt their strategies for the future.