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CoinSwitch, an Indian cryptocurrency exchange backed by Andreessen Horowitz (a16z), has reportedly reduced its workforce by 44 employees, representing 7% of its total staff.
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This move follows a similar announcement by another local digital asset firm, CoinDCX, which recently laid off 12% of its employees.
Reasons for the Reduction
According to a report by BQ Prime, CoinSwitch decided to trim its team due to declining customer activity. A platform spokesperson explained the decision:
“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.”
A source familiar with the matter noted that client interest was significantly higher during the 2021 bull market. The prolonged crypto winter has diminished that enthusiasm, making the workforce reduction necessary.
However, the CoinSwitch team assured that it will closely monitor the cryptocurrency sector and is open to rehiring affected staff if trading volumes increase again.
The exchange gained headlines last summer when Indian law enforcement agents raided its offices and the residences of its directors as part of a broader money-laundering investigation.
CoinSwitch CEO Ashish Singhal quickly refuted speculation that the firm was involved in illegal financial operations:
“Enforcement Directorate – Bengaluru has been engaged with us with respect to the functioning of our crypto platforms/exchanges. We are fully cooperating with them… Our engagement with the Enforcement Directorate – Bengaluru was NOT related to any money laundering inquiry under PMLA, as reported in some news articles.”
Part of a Wider Industry Trend
India’s second crypto unicorn is hardly the only digital asset exchange to cut staff due to bear market setbacks. Industry leaders such as Coinbase, Crypto.com, Gemini, Huobi, Bybit, BitMEX, and KuCoin are among many others on the long list of companies reducing their workforce.
As reported last week, Indian crypto exchange CoinDCX was among the latest to join this trend. Backed by Coinbase Ventures, the company dismissed 71 employees, representing 12% of its total workforce. The founders stated that the overall industry downturn rendered several specific positions unnecessary:
“We’ve tried our utmost to explore various alternatives, but current market realities compel us to take some tough decisions. We believe that this is the right thing to do for the business. We understand the emotional toll of this decision, and we bear its weight, both in responsibility and in emotion.”
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