CoinSwitch, a popular cryptocurrency exchange in India, has announced that it has laid off 44 employees from its customer support division. The company cited redundancy in roles as the reason for the layoffs, which were prompted by the prolonged cryptocurrency winter. This bear market has resulted in a lack of customer queries, leading to a decrease in the need for customer support staff.
In a statement, CoinSwitch said, “We continuously evaluate our business to stay competitive, prioritizing innovation, value, and service for our customers. To that end, we right-sized our customer support team to align with the present volume of customer queries on our platform.” The company added that the affected employees voluntarily resigned from their roles after discussions with their managers.
The 44 employees who were laid off accounted for approximately 8% of CoinSwitch’s total headcount. According to the company’s LinkedIn page, CoinSwitch currently employs 519 people. However, the company did not respond immediately to requests for comment.
CoinSwitch’s layoffs come shortly after another major Indian exchange, CoinDCX, also made staff cuts. CoinDCX reduced its workforce by 12%, with its co-founders attributing the decision to market challenges and the impact of a 1% tax deducted at the source (TDS) on local crypto exchanges. The co-founders stated, “These factors had a significant impact on our volumes and thus revenues. To adapt, we undertook several proactive measures, including direct cost optimization and investment in automation to drive efficiency and productivity.”
CoinDCX promised support packages to the affected employees, which included severance pay equivalent to the full notice period, an additional month of salary, extension of health insurance, and other forms of assistance.
These recent layoffs highlight the challenges faced by cryptocurrency service providers in India. The country imposed a 30% tax on crypto gains in 2022, leading to a massive exodus of cryptocurrency service providers and a sharp decline in crypto trading activity. In addition, Indian crypto exchanges are now required to pay a 1% TDS on all transfers of crypto assets.
Despite these setbacks, the cryptocurrency industry in India continues to evolve. Indian Prime Minister Narendra Modi recently called for a global cryptocurrency framework at the G20 Summit, indicating a growing recognition of the importance of cryptocurrencies in the global economy.
CoinSwitch and CoinDCX are just two examples of the Indian cryptocurrency exchanges that have been affected by the current market conditions. As the industry adapts to the evolving regulatory landscape and seeks to overcome various challenges, it remains to be seen how these exchanges will navigate the future of cryptocurrency trading in India.
Source link
.jpg?1693692437)
