India's Cryptocurrency Market Grew Shaky, Many Exchanges Made Layoffs
- Indian cryptocurrency exchange CoinSwitch has laid off 44 customer support employees due to a decrease in customer queries, accounting for approximately 7% of the total workforce.
- Another Indian cryptocurrency exchange, CoinDCX, recently laid off its 12% workforce, citing prolonged market downturn and tax implications.
- Despite reducing its workforce, CoinSwitch has expressed the possibility of rehiring the laid-off employees in the future.
CoinSwitch and CoinDCX have conducted layoffs
Indian cryptocurrency exchange CoinSwitch has unfortunately had to let go of 44 employees from its customer support team, constituting around 7% of its workforce. The company attributes this layoff to the downturn in the cryptocurrency market. This step was taken to ensure the proper alignment of the customer support team with the volume of customer queries. Despite these downsizing efforts, CoinSwitch has expressed optimism about rehiring these employees in the future.
CoinSwitch's decision to downsize its workforce isn't an isolated event in the Indian crypto industry. At the beginning of this month, another Indian crypto exchange, CoinDCX, had also laid off 12% of its employees, citing the prolonged market downturn in cryptocurrencies and the impact of Tax Deducted at Source (TDS) on domestic exchanges. However, CoinDCX has committed to supporting the affected employees with a severance pay during the notice period, an additional month's salary, extended health insurance, and other assistance as part of a support package.
The cryptocurrency industry in India experiencing instability
This layoff signals the challenges ahead for the cryptocurrency industry. Uncertainties in regulatory measures, especially in India, have contributed to instability in the market. While the Indian government is urging cooperation with other G20 nations to establish a global framework for cryptocurrencies, the absence of clear regulations in the country is adversely affecting local crypto companies. Notably, in 2022, the Indian government imposed a 30% tax on cryptocurrency profits and introduced a 1% Tax Deducted at Source (TDS) on cryptocurrency exchanges, requiring companies to pay 1% of the transfer value of digital assets. Following the implementation of these taxes, several Indian crypto companies have relocated to other countries.
