A big report came in news about the Indian cryptocurrency exchange WazirX. According to reports WazirX has reduced its almost 40% workforce and the reason behind this is a sharp drop in revenues from its cryptocurrency trading platform.
After this decision of WazirX more than 40-50 employees are affected. Before this decision, there were around 150 employees in the company. After this workforce reduction, the affected employees will still receive their payments for 45 days.
Before Wazirx several cryptocurrency exchanges including Gemini, Coinbase, Crypto.com, BlockFi, Bisto, and even some NFT platforms including OpenSea have already reduced their workforce due to the worst crypto market conditions.
Why has WazirX is Took Decision To Reduce its Workforce?
The main reason behind this workforce reduction is the current bear market also called the winter season. According to the reports provided by the WazirX team, Indian crypto regulatory issues like huge taxes and reduced banking support to Indian exchanges have played a major role in this reduction. WazirX also said this temporary reduction in staff will help them to survive in this crypto winter and maintain the stability of their company.
In this workforce reduction by WazirX, the most affected positions are Managers, Associate Managers, Analysts, and Team Leaders of departments like HR, Customer Support, Public Policy, and Communication. The affected employees have provided a notice period and they will also receive their payments for the 45 days.
Indian Authorities and WazirX Assets Freeze Issues
This decision is also made at a time when WazirX is facing issues related to its assets being frozen by Indian authorities. In our previous reports, we have already told you that, India’s Directorate of Enforcement (ED) had frozen around $8 million of WazirX over money laundering allegations.
According to reports provided by the Enforcement Directorate in August, Wazirx and some other cryptocurrency exchanges in the country were involved in the transfer of Rs. 2790 crore (around $350 million) to suspicious wallets under investigation. ED also said the exchanges failed in doing due diligence including KYC details.
Later the frozen funds by ED were released in September and after that Wazirx said they were been cooperating with the authorities throughout the investigation procedure. WazirX said their funds were unfrozen because there were no such fraudulent or suspicious activities found.
At last, this workforce reduction by WazirX is a sign of decreasing popularity of cryptocurrencies in the Indian crypto market. For the better future of the crypto industry and using blockchain and NFTs in innovation and daily transactions the crypto companies and regulating authorities should talk to each other and take the necessary steps to adopt it.