Started in 2018, WazirX has seen tremendous growth in recent years. The recent bearish crypto market trend has resulted in significant financial losses for the company.To deal with the crypto winter, WazirX put its expansion plans on hold and limited hiring.The tight regulations and taxes imposed by the Indian government on crypto transactions are resulting in significant losses for the exchanges.
Due to declining token values, issues with customers putting money into their accounts, and the impending implementation of a dreaded transaction tax on cryptocurrencies, WazirX has scrapped its expansion plans. Rajagopalan Menon, vice president of WazirX, stated to Bloomberg on June 26 that the previous year was the company’s “golden year” since they moved from 6 programmers to 50 in just 7 months.
Things have changed now, he said, as the business is cutting all non-critical expenses to survive the crypto winter. He insisted that they were only hiring vital employees. However, they don’t have any big layoff plans.
Rajagopalan Menon, WazirX’s Vice President, stated:
“We are hiring only critical hires, we aren’t spending money at all. It’s literally crypto winter here. “
It’s not surprising that Indian crypto exchanges have to reduce expenses. Several global crypto exchanges, including Coinbase Global Inc., Blockfi, Robinhood, Crypto.com, and ByBits, have announced layoffs in the last two weeks, citing the crypto market collapse and their financial situation.
According to experts, a new tax structure that will take effect in India is expected to kill off the country’s merge trade. On July 1, all cryptocurrency transfers over a specific amount will be subject to a 1% tax deducted at source (TDS) charge.
According to research firm Chainalysis, the Indian crypto market increased by more than 600% in the 12 months prior to June 2021, despite a 30% tax on crypto-asset revenue and a proposed hike in the value-added tax that is presently making its way through the bureaucracy. However, the trend has reversed now. Currently, India is experiencing a downturn trend, resulting in a decline in crypto market volume.
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