Crypto hiring: CoinDCX blames tax policy, bear market for layoffs

Coinbase and Binance have also significantly limited their staffing footprints in 2023


FOTOGRIN/Shutterstock modified by Blockworks


CoinDCX cut 12% of its employees this week, joining the ranks of other centralized crypto exchanges that shrank their staffing costs this year.

CoinDesk reported that the Indian crypto exchange fired 71 employees out of some 590 staffers.

The founders of the Indian crypto exchange, Sumit Gupta and Neeraj Khandelwal, published a blog post Tuesday explaining the reasons behind the significant layoffs this week. 

The two cited the “prolonged bear market” and financial crunches related to onerous crypto-specific taxes. 

Gupta and Khandelwal were referring to India’s crypto tax policy that was instituted in July 2022, which mandates investors pay a 1% tax deducted at source (TDS), in addition to a flat 30% tax on profits derived from crypto. 

Some exchanges saw 70% decreases in trading volumes in the week following the new legislation, a state of affairs the CoinDCX founders acknowledged was a catalyst for their decision to downsize.

“These factors had a significant impact on our volumes and thus revenues. To adapt, we undertook several proactive measures, including direct cost optimization and investment in automation,” they wrote in the post

India’s crypto tax policy was brought to the forefront again when the country’s lawmakers debated its national budget in the early months of 2023. However, the 30% profit tax and the 1% TDS were reaffirmed. The budget also introduced criminal penalties for not paying up TDS, including jail time of up to seven years. 

Other crypto exchanges have laid off significant numbers of employees this year. 

Coinbase kicked off 2023 by laying off 950 workers as part of a bid to shrink operating costs. This represented a 20% headcount reduction and came nine months after the company laid off 1,100 employees. 

Gemini and Luno both made significant cuts to their respective teams in January as well.

Binance, too, has aimed to reduce its numbers throughout the year. The Wall Street Journal reported in July that Binance fired 1,000 employees over several weeks. 

While Binance has confirmed that layoffs took place, the company has yet to acknowledge the exact number of affected employees. 

Binance.US also cut staff shortly following the US Securities and Exchange Commission’s filing of a lawsuit against it. 

Alchemy hires former Stripe exec

Web3 development platform Alchemy said Thursday that it has hired Guillaume Poncin, Stripe’s former head of Web3 and crypto. 

Poncin will serve as Alchemy’s head of engineering. At Stripe, Poncin was responsible for that company’s fiat-to-crypto onramp products.

Poncin has also worked for Google and computer hardware manufacturer Osmo. 

Poncin explained in a short blog post that he joined Alchemy because he believes it’s where he’ll “have the most impact in amplifying the adoption of crypto.”

“We are still early in Web3. Right now, most things are difficult. Things break. There’s friction across most of the tech stack, both for developers and for users. But it’s getting better daily,” he wrote. 

Other notable hires

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.


Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research



Aerodrome is a "MetaDEX" that combines elements of various DEX primitives such as Uniswap V2 and V3, Curve, Convex, and Votium. Since its launch on Base, it has become the largest protocol by TVL with more than $495M in value locked, doubling Uniswap's Base deployment.


Scientific reputation should be determined by a decentralized community of scientists, not the validation of higher institutions


Paxos is getting off scot-free after the SEC said it wouldn’t pursue legal action against the company


The Srcful partnership is part of a broader plan to onboard Helium “subnetworks”


Plus, a look into US spot BTC funds six months into trading


A Swedish energy-focused project named Srcful proposed to become a Helium subnetwork with its own ENERGY token


Securitize CEO Carlos Domingo thinks BUIDL will potentially hit its next $500 million milestone in just a few months