Difficult
macroeconomic conditions and a prolonged bear market in the cryptocurrency
industry have affected another digital asset exchange, which announced a
reduction in employment. Following similar moves by KuCoin, Luno, and Gemini,
the Indian exchange CoinDCX is parting with some of its employees. A post on
its official blog announced that about 12% of its staff would lose their jobs.
Most
cryptocurrency exchanges announcing workforce reductions usually attribute
their decision to high inflation, tough economic conditions, and a ‘crypto
winter’ (a prolonged period of low prices). CoinDCX founders, Sumit Gupta and
Neeraj Khandelwal, cited similar reasons, adding a third to the list.
This third
reason is the impact of the Tax Deducted at Source (TDS) regulations
implemented by the Indian government for collecting taxes at the source of
income. TDS is a method of tax collection where the payer of an amount deducts
a certain percentage as tax when making the payment.
Once
deducted, this amount is deposited with the government. Essentially, the tax is
collected at the source of income rather than at a later date. Crypto
transactions are subject to a 1% TDS from July 2022. CoinDCX claims this has
negatively affected the volumes and revenues of domestic cryptocurrency exchanges.
The
exchange
