Unocoin, Indian-based virtual currency exchange has fired around half of its staff, leaving the company with only fourteen workers. The development is first reported by Indian daily news outlet The Economic Times on April 16.
Unocoin, citing regulatory uncertainty in the industry, mentioned that it has taken the aforementioned step prior to a Supreme Court hearing on cryptocurrency’s legal status in India. The hearing is set for the month of July.
As per previous media reports, exchanges in the country have faced a suspension on banking services since the central bank, the Reserve Bank of India forced a ban on dealings with cryptocurrency and digital asset-related businesses last year.
It is to be noted that the Indian crypto industry is in the process of fighting the Reserve Bank of India’s decision, which has taken the form of a prolonged Supreme Court procedure.
Unocoin has fired over eighty percent of its staff, since its peak. Notably, the company is presently running off capital reserves as executives look forward to news about the future.
Sathvik Vishwanath, Unocoin’s CEO, told The Economic Times that they did ask people to leave last week, but their operations will continue for the foreseeable future. He continued that they have some amount of reserves to push through for the next couple of months. He added that they will wait for the Supreme Court’s verdict.
It is to be noted that the fellow Indian exchange Coindelta announced, at the start of April, it was ceasing operations for good. The exchange cited the tremendously taxing regulatory landscape platforms presently face in India.
Globally, other cryptocurrencies and digital asset related businesses have felt the nip for diverse reasons in recent months. Notably, bitcoin’s considerable price drop from its all-time-high has led to cost-cutting moves from companies such as ConsenSys and Bitmain.