On Tuesday, CoinDCX, an Indian cryptocurrency exchange with funding from Coinbase Ventures, let go of 12% of its staff. The reason cited for this decision was the continuing macroeconomic circumstances and the taxation of cryptocurrency transactions at source (TDS).
The business made it clear that this is the first time CoinDCX is dismissing workers. It had previously denied any layoffs when it announced an internal restructure earlier in January.
The choice was made after Indian cryptocurrency firms struggled with the country’s regulatory uncertainty and a drop in trading volumes in 2022 due to high crypto tax rates and TDC.
CEO Sumit Gupta of the company claims that challenging macroeconomic conditions brought on by “the prolonged bear market and impact of TDS on domestic exchanges” forced the business to make the “difficult decision.”
These elements significantly affected our volumes and, consequently, revenues. We took a number of proactive steps to adjust, such as direct cost optimisation and investing in automation to increase productivity and efficiency.
When the company was valued at $1.1 billion in 2021, it became the first crypto unicorn in the nation.
The company has around 722 employees, and the most recent round of layoffs has affected over 80 of them, according to CoinDCX’s LinkedIn page.
The business also confirmed that, following numerous in-depth and thoughtful talks with the top management of the business, it has no plans at this time to reduce the team size further.
Crypto-TDS in India
With a 30% tax on cryptocurrency income and a 1% tax deducted at source (TDS) provision on all cryptocurrency transactions beginning in February 2022, India has taken a strong stance on cryptocurrencies.
The payer deducts the TDS as an advance tax when making payments like salaries, rent, or professional fees.
In the middle of already prevalent and growing scams, these news stories put the whole country’s cryptocurrency ecosystem into a frenzy. Following the imposition of TDS, crypto exchanges in India experienced a 60–70% decline in users.
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