The Indian cryptocurrency exchange WazirX said in a statement on October 1 that it had fired more than 40% of its employees due to the company’s ongoing taxation and regulation related issues with the government.
According to three inside sources, 50 to 70 employees, or 40% of the exchange’s 150-person staff, were laid off. The laid-off staff were notified on Friday that they would be paid for 45 days, that they would no longer be required to report to work, and that their access would be revoked at the same time.
“The crypto market has been in the grip of a bear market because of the current global economic slowdown,” WazirX said in a statement on Saturday. “The Indian crypto industry has had its unique problems with respect to taxes, regulations and banking access. This has lead to a dramatic fall in volumes in all Indian crypto exchanges.”
According to CoinGecko data, WazirX daily trade volumes have consistently declined from a one-year peak of 478 million on October 28, 2021, to 1.5 million on October 1, 2022. The trading volumes have been less than a million on certain days, and “this is insufficient to maintain operations,” according to the sources.
In recent days, the Indian exchange has been faced with a slew of problems, including an online spat between Shetty and Binance CEO Changpeng Zhao about whether Binance is the parent company of the Indian exchange. Daily trading volumes were around 5 million around the time of the spat, but afterward, they dropped to less than 2 million, according to CoinGecko data.
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