By Brenda Collins
In a recent report, a prominent cryptocurrency exchange based in India, CoinDCX has reportedly laid off about 12% of its workers, remarking that the bearish crypto market and harsh tax regulations are the primary cause of the massive layoff in the firm. Meanwhile, the report also pointed out that giant crypto firms like Coibase and Binance had also let off some workers earlier this year.
According to the report, India-based crypto platform CoinDCX recently announced that it has relieved about 12% of its staff of their duties in 2023, joining the line of other prominent centralized cryptocurrency firms that recently cut down their employees including giant firms like Coinbase exchange and Binance exchange.
In addition, the report showed that out of the overall 590 employees, the India exchange laid off 71 workers. Meanwhile, Sumit Gupta and Neeraj Khandelwal, the two co-founders of CoinDCX stated the reason for the company’s latest massive layoffs in a blog post published recently.
According to the post, the two founders pointed out that the long-term bear market prevailing in the crypto industry and the demanding taxation laws the Indian government placed on crypto-related incomes forced the management of the firm to cut down its working force.
CoinDCX Blames Tax Laws And Bearish Market For Layoff
In the post, Gupta and Khandelwal were talking about the crypto tax policy that the Indian government introduced in July last year which obligates investors to remit 1% tax deducted at source, additionally asking investors to submit a fixed 30% of incomes generated from crypto sales as tax. Nonetheless, the taxation policy was discussed less in the following months.
However, in early 2023, the crypto tax policy resurfaced as a hot topic among the Indian administration as the country’s policymakers discussed their national budget. During the debate, they reaffirmed the 1% task deduction source and 30% crypto profit tax. In addition, the lawmakers introduced punishment for potential evaders of the tax laws which included possible jail time.
The following week after the Indian government implemented the laws, many crypto exchanges recorded about a 70% decline in trading volumes commenting on the drastic drawdown, CoinDCX owners claimed it strongly affected their decision to lay off some workers.
They added that it significantly impacted their trading volumes and revenues. In order to stay in business they had to take extreme measures to manage the limited resources they generated by investing in automation and optimizing costs which led to cutting down their workforce.
Coinbase And Binance Laid Off Workers Earlier 2023
Apart from the CoinDCX exchange, other notable crypto exchanges have also had reasons to lay off their staff in the past. In 2023, Coinbase, a world-leading crypto exchange based in America, laid off about 950 staff while trying to cut down its operation costs. The massive number represented about 20% of the total workforce of the company. Interestingly, the firm had laid off 1,100 employees nine months before cutting down 20% staff, according to reports.
In addition, Binance, the largest exchange globally in terms of market capitalization, reportedly fired about 1,000 workers over some weeks as it tried to reduce its operation costs. Although the giant firm admitted that it laid off some workers, the exact number of the affected workers was not revealed. Additionally, the firm reportedly weeded off another set of workers following the SEC’s lawsuit against it.
Meanwhile, Alchemy, a Web3 development protocol recently announced that it has employed the former director of Web3 and Crypto department at Stripe, Guillaume Poncin, as its chief engineer. According to the report, Poncin managed fiat-to-crypto onramp services for Stripe. In addition, he had previously worked with Google and Osmo.
Commenting on the latest development, Poncin stated on his Twitter page that he agreed to join Alchemy as he considered the platform as an avenue for him to make the most impact in crypto adoption. He added that the world is still in the early phase of Web3 with new milestones uncovered and new achievements made daily in space.
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