CoinDCX, one of India’s largest cryptocurrency exchanges, said on Tuesday it is laying off 12% of its staff due to the impact of a prolonged bear market and local tax rules.
See related article: India imposes money laundering regulations on crypto industry
Fast facts
- India, the world’s most populous nation, last year imposed a 30% flat tax on all crypto income and later added a 1% tax deducted at source (TDS) on crypto trades above 10,000 Indian rupees (US$120). This caused a capital flight as about US$3.85 billion moved from India’s centralized crypto exchanges to foreign exchanges between February and October 2022, to avoid the taxes, according to Indian think tank Esya Centre.
- “Startups and businesses globally are going through challenging times due to tough macro conditions, more so in crypto because of the prolonged bear market and impact of TDS on domestic exchanges. These factors had a significant impact on our volumes and thus revenues,” CoinDCX said in a statement on Tuesday.
- Impacted employees will receive support packages consisting of severance pay equivalent to the full notice period, a month’s salary, variable pay and incentives dues, encashment of unutilized leaves, extension of health insurance and wellness benefits, the exchange said.
- In a January interview with Forkast, Sumit Gupta, co-founder of CoinDCX, stated that the exchange boasts a robust balance sheet with strong cash reserves. He added that with these resources, the company could sustain itself for up to five years without any revenue.
- CoinDCX was valued at US$2.15 billion after a US$135 million raise last April.
- CoinDCX did not respond to Forkast’s request for comment.
See related article: India not against blockchain tech, but cryptocurrency should be monitored, says FM
