India’s Enforcement Directorate (ED) on August 25 raided five properties linked to Coinswitch Kuber, as it launched an investigation on the crypto exchange for allegedly violating foreign exchange laws. The company, which was founded in 2017, is being investigated to investigate whether it acquired shares worth over $250 million (about Rs 1,997 crore) in violation of foreign exchange laws. India’s financial watchdog, the ED, is also investigating CoinSwitch for not placing Know Your Customer (KYC) requirements in compliance with the laws of India.
CoinSwitch shared a general statement on this development, which confirmed the coordination with government agencies.
“We receive queries from various government agencies. Our approach has always been of transparency. Crypto is an early stage industry with enormous potential and we constantly engage with all stakeholders,” said a company spokesperson.
So far, the ED has not shared details on its findings from the discovery of premises related to CoinSwitch.
according to a report good By CoinTelegraph, the offices and residences of senior CoinSwitch executives were also not spared from searches by ED officials.
Indian crypto exchanges are going through rough times in the recent times.
Back in July, notices were served by the ED over alleged money laundering practices with CoinSwitch Kuber, CoinDCX and WazirX.
In August, the ED also opened an investigation on the WazirX crypto exchange over alleged predatory lending practices. According to investigators, a group of Chinese firms in the lending business, which were banned from operating in India, were using WazirX to wire their funds internationally via cryptocurrency.
Amid these back-to-back confrontations between law enforcement agencies and Indian crypto firms, Finance Minister Nirmala Sitharaman has sounded an alert.
Earlier this month, Sitharaman warned members of the Indian crypto community to be careful with their investments and protect themselves from financial risks.
At this point, India has over 115 million crypto investors, which is 15% of its vast population, said a recent report by KuCoin crypto exchange.
