Cryptocurrency trading volumes in India are falling as digital asset-related tax laws became applicable in April, in addition to tanking token prices and shrinking liquidity.
Specifically, crypto exchanges such as WazirX, ZebPay, CoinDCX and BitBNS have seen their trading volumes plunge between 10% and 70% in the last week, Blockworks reported Tuesday, citing CoinGecko data.
Of course, a slump in volumes of that magnitude may lead to possible job layoffs as well as lower revenue down the road. “Transaction volume in the crypto space has collapsed,” Manuel Ortiz-Olave, co-founder of Brickken, told Blockworks through Telegram. “This implies that companies dependent on transaction fees (i.e. exchanges and similar) will see a major revision of revenue forecasts, which will drive cost restructuring decisions.”
Recall at the beginning of February when India's Finance Minister Nirmala Sitharaman said the country will impose a 30% tax on income from cryptos and non-fungible tokens, or digital representations of real-world objects.
Looking at the U.S., crypto exchange Coinbase Global (COIN), for example, is cutting its headcount by 18% "to ensure we stay healthy during this economic downturn," CEO and co-founder Brian Armstrong wrote in a blog post in mid-June. And that's just the tip of the iceberg. Winklevoss-lead Gemini laid off 10% of its employees, citing "turbulent market conditions."
Earlier, embattled crypto lender Celsius Network slashes around 25% of its headcount.