CoinDCX Takes Tough Measures Between Challenging Crypto Climate

A major participant in the Indian cryptocurrency exchange sector, CoinDCX, is cutting staff in reaction to the protracted bear market conditions and the effect of India’s strict tax laws on cryptocurrency trading income. This choice will have an impact on about 12% of its workforce.

Trimming the Team down

CoinDCX is systematically streamlining its business processes. The conversation made it clear that 71 people will be let go since their jobs no longer fit with the company’s current strategic goals. An estimated 590 people work for the Mumbai-based firm, which was established in 2018 by Neeraj Khandelwal and Sumit Gupta. All of these teams have been touched by this employment change.

India’s Taxation Landscape and Crypto Challenges

Due to India’s tax laws, which include 30% tax on cryptocurrency income and a disputed 1% tax deducted at source (TDS) on all cryptocurrency transactions imposed as of February 1, 2022, the country’s cryptocurrency industry has had to overcome significant obstacles. The introduction of TDS and the worldwide bear market in cryptocurrencies have drastically reduced trading volumes, which has a negative impact on the income of Indian cryptocurrency exchanges. Neeraj Khandelwal had claimed in May that CoinDCX has sufficient cash reserves to run its business for up to four years.

In an official statement, CoinDCX acknowledged the challenges facing the cryptocurrency industry globally and, more acutely, in India. The exchange commented, “Startups and businesses worldwide are navigating complex conditions, particularly in the crypto sector due to the prolonged bear market and the impact of TDS on domestic exchanges. These factors have notably affected our trading volumes and, subsequently, our revenues. In response, we have made the challenging decision to realign specific teams and steer our business towards profitable and sustainable growth.”

CoinDCX’s Leadership Perspective

Co-founder of CoinDCX Sumit Gupta expressed the decision’s complexity on LinkedIn. He expressed his sincere sadness at having to say goodbye to loyal team members, highlighting the seriousness of the choice in terms of both responsibility and emotional effect.

While making organizational changes in response to the shifting issues presented by the cryptocurrency industry and tax laws, CoinDCX is still dedicated to attaining long-term sustainability and profitability in India’s dynamic cryptocurrency market.