WazirX, an Indian crypto exchange, fires 40% of its staff, according to sources

 There was a 45-day payment period promised to the laid-off employees.

WazirX, an Indian exchange, announced in a statement shared with CoinDesk on Saturday that it has fired a number of staff members.

Three sources with knowledge of the situation informed CoinDesk that between 50 and 70 workers, or 40 percent of the 150 people employed by the exchange, were let go. The laid-off employees were informed on Friday that they would be paid for 45 days, that they would no longer be needed to report for work, and that their access would be revoked at the same time.

WazirX stated in a statement on Saturday that the present global economic downturn was to blame for the bear market that has gripped the cryptocurrency sector. "Regarding taxes, regulations, and banking access, the cryptocurrency sector in India has seen some special issues. All Indian cryptocurrency exchange volumes have fallen dramatically as a result of this."

As India's top exchange, the business stated that maintaining financial stability and providing for its clients was a top responsibility. "We have to cut back on employees in order to survive the crypto winter in order to accomplish this. This circumstance is comparable to the challenging times the industry experienced in 2018, when we doubled down and developed our ground-breaking P2P engine. The cryptocurrency market cycles, and a spectacular bull market invariably follows a bad market. We'll keep putting our customers' needs first while expanding. When the bull market finally materialises, we are certain that we will be stronger for it ".

Among the sources, one claimed "Several departments, including customer service, HR, and others, have reduced their staff. Those let go included managers, analysts, associate managers, and team leaders." According to a different employee who was let go, the whole public policy and communication staff was sacked.

One of the WazirX workers who lost his job "abruptly" on Friday said that the firm "was never really honest or transparent with its financial status, either while it was doing well or today."

According to CoinGecko statistics, WazirX daily trade volumes have been slowly decreasing from a one-year high of 478 million on October 28, 2021 to 1.5 million on October 1, 2022. Some days' trading volumes have been less than one million, and "this is not enough to maintain operations," according to the sources.

After India's strict crypto tax rules went into effect in March 2022, WazirX Co-Founder Nischal Shetty told CoinDesk that "we have entered a period of suffering." This is when trade volumes started to fall.

.The Indian exchange has seen a number of issues recently, including an online argument between Shetty and Changpeng Zhao, CEO of Binance, on whether Binance is the parent business of the Indian exchange. According to statistics from CoinGecko, daily trade volumes were about 5 million during the spat but decreased to fewer than 2 million subsequently.

Two of the fired employees said that at one all-hands meeting that followed the online spat, it was said that the company had "good reserves" and was thus financially secure.

The Indian Directorate of Enforcement's money laundering investigation, which included a raid on one of WazirX's directors, also targeted WazirX.

.Nischal Shetty, a co-founder of WazirX, comments on a dispute with the CEO of Binance.



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