CoinsSwitch initiates layoffs amidst regulatory uncertainty in Indian crypto industry

CoinsSwitch, a cryptocurrency exchange backed by Tiger Global, has announced a layoff of 44 employees, constituting around 8% of its workforce. The move is part of a strategic restructuring plan in response to the evolving regulatory landscape and challenges faced by the Indian cryptocurrency industry. CoinsSwitch, which employs 519 individuals, confirmed that the layoffs mainly impacted its customer support team. The company stated that affected employees voluntarily resigned from their positions, emphasizing its commitment to aligning operations with current customer query volumes.

Despite the layoffs, CoinsSwitch has continued to hire, recruiting 60 new employees since April. The exchange, which has secured over $300 million in funding since its establishment in 2017, maintains a funding runway for the next five years. CoinsSwitch’s spokesperson affirmed their focus on innovation, value, and service to customers, aiming to navigate regulatory challenges while maintaining competitiveness and customer support.

The layoffs in the Indian crypto industry come against a backdrop of increased regulatory scrutiny and taxation policies that have significantly impacted trading volumes and business operations. This has prompted several industry players, including other cryptocurrency startups, to take measures such as layoffs and operational adjustments. Amidst regulatory uncertainty, the Indian crypto industry faces a series of challenges, from heavy taxation on gains to strict reporting requirements. These circumstances have influenced not only CoinsSwitch but also the broader ecosystem, raising questions about the future of the industry in the country.