CoinDCX, one of India’s most prominent cryptocurrency exchanges, is cutting about 12% of its staff due to the prolonged bear market and India’s tax policies [which] hit revenue, according to a company spokesperson. The Mumbai-based exchange, founded by Neeraj Khandelwal and Sumit Gupta in 2018, has about 590 employees and has been forced to lay off 71 of them due to the current economic climate. India has imposed a 30% tax on crypto profits and a 1% tax deducted at source (TDS) on all transactions since Feb. 1, 2022, which has had a significant impact on [CoinDCX’s] volumes and thus revenues, according to a statement.
Startups and businesses globally are going through challenging times due to tough macro conditions, more so in crypto because of the prolonged bear market and impact of TDS on domestic exchanges, the company said. Sumit Gupta expressed his sorrow in a LinkedIn post, saying, Today marked one of the most difficult moments for me and Neeraj in our journey at CoinDCX. We had to make a tough choice that involved bidding farewell to some of our brilliant and dedicated team members at CoinDCX. We are deeply sorry for this, and we bear its weight, both in responsibility and in emotion.