Crypto exchange CoinSwitch to diversify into wealth management

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₹45.6 crore in FY23 from ₹248.6 crore in FY22. Its losses reduced to ₹385 crore from ₹513 crore during the same period, according to company filings with the Registrar of Companies (RoC). The company’s diminished scale is attributable to the challenges being faced by the industry.

The platform, like the overall crypto industry, has seen trading volumes remain far below the 2022 peak. While CoinSwitch was an exchange aggregator, it has attempted several products such as its own exchange, and even a multi-exchange platform, to bring users to its platform. However, heavy taxation in India saw gross crypto trading volumes decline by over 95% since their peaks in early 2022 across all exchanges.

CoinSwitch was no exception. In the Union budget for fiscal year 2022-23, the government imposed a 30% tax on crypto gains, besides a 1% tax deducted at source, prompting investors to move to overseas platforms. On 12 December, the company formed an umbrella entity, PeepalCo, in order to diversify its offerings.

Singhal emphasized that while CoinSwitch itself will continue to focus on cryptocurrencies, standalone products will work independently within the new parent umbrella. Crypto trading volumes are growing again, but they are not comparable to the surge seen in 2022, Singhal admitted. “Users were able to get into the crypto market and simply trade crypto, which contributed to the surge.