Crypto portfolio management and tax calculation platform, CoinTracker, has dropped 19 employees, blaming the downturn in the market and over-hiring. 15 of the 19 people who were laid off, according to a corporate spokesman who verified the layoffs via email, were part of the customer support staff.
Jon Lerner, CoinTracker’s co-founder, and CEO stated in the email to the employees that the current bear market together with high inflation, and increasing interest rates necessitated the layoff of employees. Additionally, the company said it has explored other cost reduction measures before finally resorting to letting go of the staff members.
The company also provided a severance package for affected employees. Affected employees will be given 12 weeks of pay, three months of healthcare coverage for US-based employees, and the removal of the equity cliff, which means that anyone leaving can remain a shareholder. They will also be permitted to keep their laptop computers.
The news comes shortly after crypto exchanges SuperRare Labs and Huobi Global confirmed the reduction of employees due to the ongoing crypto winter.
CoinTracker is a digital firm that allows users to keep track of their cryptocurrency investments, compute taxes, and generate tax reports. It supports over 8,000 cryptocurrencies and exchanges, and can automatically import data from exchanges and wallets.
Advancing Crypto Tax Regulations
Tax regulations in the crypto industry vary between different countries. It is therefore important for crypto investors to familiarize themselves with specific tax laws in their country.
In the United States, cryptocurrency is considered property for tax purposes, and transactions involving cryptocurrency are subject to capital gains tax. This means that if you sell or exchange your cryptocurrency for a profit, you must report that gain on your taxes. CoinTracker makes these processes easy for investors.
In advancing the taxation push, the Italian government received a vote of confidence for its 2023 expansionary budget as well as parliamentary approval to tax cryptocurrency. A 26% gain tax has been imposed on all cryptocurrency enterprises in Italy as a result of the approval.
On the other hand, the Japanese government is prepared to lower the 30% tax imposed on cryptocurrency exchanges in the region.