Crypto Exchange CoinDCX Sacks Employees Amid Restructuring Drive

CoinDCX has begun cutting its workforce as part of a restructuring drive at the cryptocurrency exchange, a source close to the development told Inc42. 

The layoffs have affected the sales and marketing teams at the company. The crypto exchange sent an email to the impacted employees underlining the contours of the severance package, the source said. 

Inc42 could not verify the contents of the email. The number of employees impacted by the layoff exercise was not immediately clear.

Due to the restructuring exercise, no new projects have been assigned to the marketing and sales teams, the source added. It, however, remains to be seen if the layoffs would be expanded to other verticals or departments. 

Meanwhile, Moneycontrol reported that the cryptocurrency exchange sacked 80-100 employees across marketing, branding, and activation teams in a restructuring exercise that took place last month. 

The impacted employees have reportedly been given a month’s severance pay and let go after serving their notice periods. 

In a statement, a CoinDCX spokesperson said, “At CoinDCX, with an employee strength of 642 team members, we strive towards giving meaningful roles and charters that would help our employees to learn & grow in this space.”

“As we are in the build phase and some products are on the anvil, this has given an opportunity for an internal reshuffle. These restructured teams are being assigned interesting mandates to contribute to CoinDCX’s growth journey in the Web3 space,” the spokesperson added. 

The layoffs have largely been attributed to the ongoing cost-cutting drive and an ongoing bid to streamline operations within the company. 

Tough Times For The Crypto Space

The year 2022, which began with hectic hiring activity and fundraises, turned out to be a disaster for the country’s crypto startups. The biggest reason was the crypto winter which has bankrupted major crypto exchanges across the world.

Meanwhile, the ongoing funding winter in the Indian startup ecosystem has pummelled crypto exchanges, with many of them looking to cut corners and re-evaluating the ‘growth over sustainable profit’ strategy. 

While CoinDCX was profitable in FY21, a lot has changed since then. 

Besides, homegrown crypto exchanges, including CoinDCX, have also come under scrutiny for alleged violations of law. Authorities are currently probing alleged foreign exchange violations by multiple such players. 

In many cases, the Enforcement Directorate (ED) raided the offices of crypto exchanges and freezed crores of rupees. The ED also served a notice to CoinDCX, seeking documents and details in a FEMA probe. 

Not just this, global companies such as FTX and Vauld declared bankruptcy over the last year. 

On the regulatory front, crypto remains a grey area in India. While there is no regulatory certainty, the Centre has levied 1% tax deducted at source (TDS) on crypto transactions and 30% tax on income from digital assets, including cryptocurrencies. 

Meanwhile, the RBI has been a staunch opponent of cryptocurrencies. RBI Governor Shaktikanta Das recently said that the next financial crisis would take place due to private cryptocurrencies. Besides, the government has also undertaken multiple programmes to raise more awareness about cryptocurrencies.