Indian Crypto Exchanges CoinSwitch and CoinDCX Slash Workforce Amid Challenging Market Conditions

CoinSwitch Reduces Workforce Due to Lack of Customer Queries

India's CoinSwitch crypto exchange has become the latest trading platform in the country to lay off employees, as the prolonged cryptocurrency winter takes its toll. According to a report by local news agency Moneycontrol, CoinSwitch has cut 44 jobs from its customer support division in August, citing redundancy caused by a lack of customer queries during the bear market. The exchange stated that it had right-sized its team to match the current volume of queries, with the affected employees voluntarily resigning after discussions with their managers.

12% of CoinDCX Staff Also Cut Amid Market Challenges

CoinSwitch is not the only Indian crypto exchange to be hit by market challenges and downsize its workforce. Last week, CoinDCX announced that it was cutting 12% of its team, with 730 employees currently listed on LinkedIn. Co-founders Sumit Gupta and Neeraj Khandelwal explained that the decision was made due to the impact of a 1% tax deducted at source (TDS) on local exchanges, as well as declining volumes and revenues. They highlighted that the company had implemented cost optimization and invested in automation for greater efficiency.

Taxation Policies and Market Conditions Contribute to Industry Struggles

The challenges faced by CoinSwitch and CoinDCX are a reflection of the broader difficulties experienced by the cryptocurrency industry in India. In 2022, the government imposed a 30% tax on crypto gains, leading to an exodus of service providers and a decline in trading activity. Additionally, the implementation of a 1% TDS by crypto exchanges has further impacted revenues. Under this policy, exchanges are required to pay 1% on all crypto asset transfers. These factors have created a challenging environment for Indian exchanges, forcing them to take steps to adapt and streamline their operations.