The Context Behind CoinDCX’s Decision
Founded in 2018 by Neeraj Khandelwal and Sumit Gupta, CoinDCX has risen to prominence as one of India’s top cryptocurrency platforms. Operating out of Mumbai, the exchange currently has a workforce of about 590. Now, 71 of these positions across diverse teams will be cut, reflecting a change in business direction.
Impact of Market and Tax Policies
A lasting bear market in the cryptocurrency realm combined with India’s inflexible tax measures have caused a dip in revenue. Notably, since February 1, 2022, the Indian government implemented a 30% tax on profits from cryptocurrencies and a 1% TDS on every transaction. These decisions, especially the TDS, significantly decreased trading volumes, pushing many Indian crypto exchanges into a so-called “survival mode.”
Founder’s Statement
In a statement, CoinDCX founders Sumit Gupta and Neeraj Khandelwal mentioned, “Startups and businesses globally are facing obstacles due to adverse macro conditions. The crypto sector feels it even more because of the ongoing bear market and the TDS’s impact on local exchanges. These elements drastically affected our volumes and revenues, prompting us to restructure certain teams to aim for sustainable growth.”
Past Challenges and the Path Ahead
Having achieved the status of India’s first crypto unicorn in 2021 with a valuation hitting $1.1 billion, CoinDCX hasn’t been a stranger to challenges. Last year, the Enforcement Directorate requested documents tied to a FEMA case. However, CoinDCX always prioritized transparency, answering governmental inquiries appropriately.
Assuring that there will be no further staff reductions, the founders stressed that these choices were finalized after extensive dialogues and collaboration with top leadership.
Support for Affected Employees
The laid-off employees won’t be left high and dry. CoinDCX is providing resources and assistance including full severance packages, an extra month’s salary, pending variable pay and bonuses, cash out of untouched leaves, prolonged health insurance and wellness perks, along with access to counseling support.
