Cryptocurrency exchange CoinDCX announced its intention to cut its staff by 12% due to difficult macroeconomic conditions that have significantly reduced its revenues.
The layoffs will affect 71 employees across all departments of the exchange. All affected employees will receive severance pay equivalent to a full month's notice, one month's additional pay, and compensation for unused vacation time. They will also have their health insurance coverage extended.
"We have done our best to explore various alternatives, but the current market realities force us to take difficult decisions," commented Sumit Gupta, Co-Founder and CEO.
CoinDCX India, which was founded in 2018, has about 590 employees, according to information published by CoinDesk.
India has imposed a 30 percent income tax and 1 percent withholding tax (TDS) on all transactions as of February 1, 2022, which has put pressure on the country's cryptocurrency market. As a result, many investors have reprioritized their digital assets, and cryptocurrency exchanges are on the verge of survival.
CoinDCX's decision to reduce its staff highlights the negative trends that cryptocurrency companies in India are experiencing due to the uncertainty of the cryptocurrency market and regulatory complexity.
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