Report: Indian Exchange WazirX Feels the Pinch, Lays off 40% of Workforce

2 October 2022, 09:04 GMT+0000
Updated by Ryan James
2 October 2022, 09:04 GMT+0000
In Brief
  • WazirX sacks around 40% of its workforce.
  • The Indian-based exchange cites crypto winter.
  • The exchange has faced recent regulatory scrutiny from Indian authorities.
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WazirX, a top Indian Crypto exchange on Saturday cut its workforce by 40% following the prolonged crypto downturn. 

Reports revealed that about 40-70 employees of the company’s 150 workforces were affected by the decision. The affected workers would still receive payment for 45 days.

This move follows similar ones made by several crypto companies like Gemini, Coinbase, BlockFi, Crypto.com, Bitso, and even NFT Marketplace, OpenSea due to the poor market conditions.

Why WazirX is reducing its workforce

WazirX has credited its decision to the current bear marker. According to the firm, Indian crypto regulatory issues like taxes, regulations, and banking access have contributed to a decline in crypto trading volumes on Indian exchanges.  

WazirX stated that the staff reduction will help it weather the crypto winter and also maintain stability. 

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Reports revealed that workers in positions like Managers, Analysts, Associate Managers, and Team Leaders of departments like HR, Customer Support, Public Policy, and Communication were affected.

Indian authorities and WazirX assets

The reduction in the WazirX workforce also comes at a time the exchange is battling Indian authorities over the freeze of its assets.

India’s Directorate of Enforcement (ED) had frozen about $8 million of the exchange assets in August over money laundering allegations.

According to ED, WazirX and some other exchanges in the country processed the transfer of Rs 2,790 crore (over $350 million) to wallets under investigation. ED further accused the exchange of not doing due diligence which included KYCs and even making a Suspicious Transaction report. 

The funds were later released in September.

However, while announcing the unfreezing of assets, WazirX said they have been cooperating with the authorities throughout the investigation. They added that the funds were unfrozen as there were no suspicious activities found.

For Be[In]Crypto’s latest Bitcoin (BTC) analysis, click here

Disclaimer

BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.