CoinSwitch, an India-based crypto platform, recently laid off 44 of its customer support staff. This is the first round of layoffs for the company. However, it comes a week after CoinDCX let go of 12% of its staff.
The downsizing was described as a “right-sizing” measure to align with the current level of requirements.
CoinSwitch Crypto Platform Layoffs Unrelated to Industry Trend
A representative from CoinSwitch elaborated on the layoffs, stating,
“We continuously evaluate our business to stay competitive, prioritizing innovation, value, and service for our customers. To that end, we right-sized our customer support team to align with the present volume of customer queries on our platform.”
CoinSwitch let go of 44 members of our customer support team. As per the statement, the employees ‘voluntarily resigned’ after a company discussion. The spokesperson added,
“Over the last year, many support team members have been absorbed into other functions based on the suitability of their skills for the other roles. We are extending all our support to the impacted employees.”
While the layoffs are not directly related to the slowdown in the crypto market, the company expects to absorb the laid-off employees once the volumes recover.
Financial news outlet Moneycontrol, which initially broke the news, also reported layoffs within the operations team. CoinSwitch clarified that its Virtual Digital Assets Business does not have a standalone operations team.
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According to details obtained by BeInCrypto, severance packages and additional benefits will vary. CoinSwitch is offering up to four months of pay based on the employment tenure.
Meanwhile, customer queries have significantly dwindled since their peak, which partially prompted the downsizing. CoinSwitch is also reportedly facilitating job placements for the affected employees through its network.
The company onboarded over 60 people since April.
Regulatory Uncertainty Amid Crypto Slowdown
CoinSwitch reportedly aims to diversify its product offerings moving forward. Ashish Singhal, Co-founder and CEO of CoinSwitch, revealed that to Moneycontrol last month.
The company is reportedly in discussions with regulators on plans to introduce a variety of financial products by year-end. These include fixed deposits, mutual funds, bonds, stocks, and exchange-traded funds as it looks to evolve into a wealth tech platform.
Notably, the layoff announcement follows closely on the heels of a similar move by CoinDCX. The Indian competitor let go of 71 employees, constituting 12% of its workforce.
These staffing changes are occurring against a backdrop of regulatory uncertainty in India’s cryptocurrency market.
India introduced a 30% tax on income from virtual digital assets and a 1% Tax Deducted at Source (TDS) on crypto transactions over a cap, impacting trading volumes. The report notes that taxation changes resulted in an overwhelming 85-90% drop in trading volumes.
Yesterday, Indian Prime Minister Narendra Modi called for harmonized global regulations on cryptocurrency, likening the need to existing international standards in aviation. His statement came ahead of the upcoming G20 Summit slated for September 9-10 in Delhi, India.
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