Amid the ongoing crypto winter, India-based cryptocurrency exchange CoinSwitch has reportedly laid off 44 employees from its customer support department in August. The reason given for the layoffs was redundant positions due to a lack of customer inquiries resulting from the bear market.
CoinSwitch stated that the adjustments were made to accommodate the current volume of customer inquiries on its platform. The affected employees, who made up around 8% of CoinSwitch's total headcount, reportedly voluntarily resigned after detailed discussions with their managers.
CoinSwitch's layoffs come shortly after another Indian exchange, CoinDCX, also reduced its workforce by about 12%. The co-founders of CoinDCX mentioned market challenges and the impact of a 1% tax deduction at source (TDS) for local cryptocurrency exchanges as reasons for the decision. The move was accompanied by support packages for the affected employees, including severe pay, extended health insurance, and other forms of assistance.
India's cryptocurrency industry has faced significant challenges, including a 30% tax on cryptocurrency gains imposed in 2022, which led to a decline in trading activity and an exodus of service providers. Additionally, the implementation of a 1% TDS for cryptocurrency exchanges have put further financial pressure on these platforms.
Despite the challenges, exchanges are trying to adapt to the evolving regulatory landscape in India. Cryptocurrency exchanges are adjusting their operations and workforce as they navigate the changing market conditions and regulatory requirements in the country.
