The bear market and TDS have made it difficult for Indian cryptocurrency exchanges CoinSwitch and CoinDCX to keep their staff levels up.
The extended crypto winter’s aftershocks are reverberating throughout the industry, causing a seismic upheaval in the Indian crypto scene. The nation’s most well-known cryptocurrency exchange, CoinSwitch, has made the difficult decision to reduce its staff, the most recent in a series of calculated moves to navigate the turbulent seas of the cryptocurrency industry.
CoinSwitch said goodbye to 44 employees from its customer care section on August 28th, according to local news outlet Moneycontrol. The company cited role redundancy in the face of declining consumer inquiries, a direct result of the protracted bear market, as the reason for the decision.
CoinSwitch’s Resilience
Despite these adjustments, CoinSwitch remained unwavering in its determination to develop and keep up with the rapidly changing cryptocurrency market. In the conversation, it was openly admitted that the company had reduced the size of its customer support team as a result of the market’s shift in order to better match the volume of customer enquiries at the time.
After sincere discussions with their managers, the 44 members of the support team graciously parted ways, welcoming a new chapter in their professional lives. The workforce at CoinSwitch, which, according to its LinkedIn page, consists of 519 committed individuals, has been impacted by this decision by about 8%.
Related: Indian PM Modi Urges G20 to Adopt Global Cryptocurrency Framework
Industry Trends Continue
The choice made by CoinSwitch fits into a larger trend in the Indian cryptocurrency market. A another significant player, CoinDCX, had just one week before disclosed a 12% employee cut. The business is reverberating with change as a result of market problems that have put cryptocurrency exchanges to the test.
In addition to the erratic market conditions, governmental actions like the introduction of a 30% tax on cryptocurrency gains in 2022 are also blamed for the move. This action resulted to a huge departure of cryptocurrency service providers and a sharp fall in trading activity. Furthermore, the implementation of a 1% tax deducted at source (TDS) has made things more difficult for domestic cryptocurrency exchanges.
Exchanges like CoinDCX are embracing novel strategies like automation and cost optimization in a context where adaptation is essential. They remain strong in their determination to weather the turbulence and negotiate the complexities of the shifting regulatory landscape. To show how much value they place on their devoted staff, CoinDCX pledged a full support package in an effort to assist the affected workforce. The Indian crypto industry’s tenacity shines through as it continues to traverse these unknown waters, displaying an unflinching dedication to transformation in the face of difficulty.