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UK-based crypto tax firm Koinly is letting go 14% of its global team, citing the need “to combat the challenging conditions facing the cryptocurrency market and economy at large.”
The job cuts will affect a total of 16 people, with CEO Robin Singh explaining the move was undertaken in response to the intensifying bear market, compounded by the collapse of the FTX crypto exchange last month.
“We are taking measures to ensure we’re as lean as possible as we make our way through the crypto winter,” Singh said in a company-wide statement. “While change is an unavoidable part of business, it’s been a sad week at Koinly as we have had to let go of several of our colleagues.”
Koinly isn't the only crypto firm to have slashed staff numbers amid the bear market, with cryptocurrency exchanges Bybit and Swyftx this week announcing job cuts of 30% and 35%, respectively.
The move also follows a 225% expansion in Koinly’s headcount since the start of the year, which, according to the firm, was fueled by record growth.
A remote-first company
Established in 2018, Koinly is the tax partner for a number of cryptocurrency exchanges and is used by crypto investors, accountants and blockchain businesses, enabling them to track their crypto transactions in one place and calculate the total capital gains and income derived from their gains.
The company also announced the imminent closure of its London office in April next year, which, however, is not a direct result of the layoffs. Koinly’s Sydney office will remain open, with the firm stressing that its “globally distributed teams are able to work remotely.”
“Koinly is a remote-first company,“ the firm’s representative told Decrypt. “The decision to close the UK office comes after a poll where our UK team indicated they have a preference towards remote work whereas the Sydney team preferred the office.”
Koinly's CEO also noted that during the current bear market the firm is seeing fewer people reporting crypto on their tax returns, mostly because of the losses suffered this year.
“However investors are generally unaware that filing losses on their tax returns benefits them in the long run, as losses can be used to offset gains in future years”, added Singh.