CoinTracker, a cryptocurrency tax reporting platform, has recently come under fire after The Block reported that they had fired 20% of employees via internal emails. This news has caused much controversy in the crypto community, with many questioning the motives behind such a decision. According to a person familiar with the company, before the layoffs occurred, CoinTracker had already taken measures to optimize all other costs to minimize expenses.
EXCLUSIVE: Crypto tax unicorn CoinTracker lays off 19 employees, citing industry gloom, 'over-hiring' https://t.co/gMSxJkoktx
— The Block (@TheBlock__) January 27, 2023
Last year, the US passed a $1.2 trillion infrastructure bill, and a set of new rules made it mandatory for the crypto exchanges to disclose their profits and provide the names and addresses of their clients. CoinTracker has become a major player in cryptocurrency, tracking over 3% of the global cryptocurrency market and representing over $50 billion in digital assets.
An AI-powered tool that helps exchanges and users keep track of digital assets in real-time will allow crypto exchanges to comply with the new regulations. With CoinTracker’s help, exchanges and investors can save time and resources while staying compliant with the rules set forth by the bill.
Growing Layoffs in Crypto Sector
This is not the first company to downsize due to the critical market. Last year, Koinly, a UK-based cryptocurrency tax firm, also reduced its staff by 14% amid challenging market conditions. The move by these firms may also be seen as an indication of how competitive the sector has become and how critical it is for businesses to remain efficient and cost-effective.