Indian Crypto Exchange CoinDCX Fires 12% of Workforce Due to Macro Conditions and TDS
Key Points:
- CoinDCX, backed by Coinbase Ventures, has laid off 12% of its workforce.
- The layoffs are attributed to ongoing macroeconomic conditions and the tax deducted at source (TDS) on crypto transactions.
- The company previously denied any layoffs but announced an internal restructuring in January.
- The decision comes amidst regulatory uncertainty and a decline in trading volumes in India’s crypto market.
- CoinDCX is offering a support package to impacted employees.
TDS on Crypto in India:
India has implemented a 30% tax on crypto profits and a 1% tax deducted at source (TDS) provision on all crypto transactions since February 2022. The TDS serves as an advance tax deducted by the payer while making various payments. These measures have caused a significant decrease in users for crypto exchanges in India, exacerbating the challenges faced by the industry.
Hot Take:
The layoffs at CoinDCX highlight the challenging environment for crypto startups in India. The regulatory uncertainty and high tax rates have negatively impacted trading volumes, leading to difficult decisions for companies. While CoinDCX is providing support to affected employees, the future remains uncertain for the Indian crypto market as it navigates these obstacles.
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