Crypto exchange CoinSwitch announced recent layoffs of 44 employees, attributing the job cuts to a prolonged downturn in trading volumes in India’s cryptocurrency market. In a statement, CoinSwitch said it would be open to rehiring the affected employees if trading activity were to pick back up again in the future.
The company has offered support to the impacted staff members and has reassigned some to other roles based on their skills, as per the statement. CoinSwitch, which became India’s second crypto unicorn in 2021 after a $260 million funding round, has around 518 employees currently according to its LinkedIn page. But the crypto bear market and stringent new tax policies in India are now leading firms like CoinSwitch to reduce headcount.
Last year,Indiaimplemented a 30% flat tax on all crypto income as well as a 1% tax on trades above 10,000 rupees. Research shows these taxes may lead to over $1.2 trillion in lost Indian crypto exchange volume over the next four years. Already, nearly $4 billion in volume has migrated from regulated Indian platforms to foreign exchanges since the tax rules took effect in February 2022. The job cuts at CoinSwitch mirror steps taken by rival exchange CoinDCX, which cut 12% of staff last week citing the crypto downturn and tax policies. The layoffs highlight how India’s crypto industry is being impacted by declining trading activity as well as tighter regulation and taxation.
