India’s Financial Watchdog Investigating CoinSwitch Offices: Report


India’s Financial Crimes Unit has targeted another crypto firm in the country.

The Enforcement Directorate (ED) reportedly accused CoinSwitch Kuber, one of India’s largest crypto exchanges, of violating Indian forex laws. The agency too investigation five CoinSwitch locations on Thursday.

An anonymous spokesperson said Reuters than financial watchdogs grasped financial documents, collected information on foreign transactions and audited its compliance practices, all based on alleged forex violations.

CEO Ashish Singhal said it was not a raid and “no money laundering” but an investigation into the operation of the exchange, the enforcement of its Know Your Customer requirements (KYC) and the integration of new customers.

“Most of their engagement with us has been to find out what CoinSwitch does,” Singhal said. Reuters. He added that the ED “has been engaged with us regarding [the] operation of our crypto platform and we cooperate fully with them.

In July, Singhal spoke to trade standard, an Indian publication, saying that the firm ensures “that crypto transactions are within the KYC framework.”

Investment giant Andreessen Horowitz led a funding round that granted CoinSwitch unicorn status last year. CoinSwitch is also supported by Sequoia Capital India and Coinbase Ventures, among others.

ED coming after Indian exchanges

This is not the first time that India’s financial watchdog has cracked down on the country’s crypto industry.

On August 11, it was reported that ED had gone after WazirX, another crypto exchange. The agency alleged that WazirX sent over $130 million worth of unauthorized money in international trade, according to the Economic period.

The agency announcement a day later it had frozen $46.4 million in assets from Singapore-based crypto exchange Vauld due to alleged predatory lending practices.

Along with these charges, the country recently passed a 30% tax on crypto-generated revenue. The high price has dropped volumes on various exchanges, including WazirX, ZebPay, and CoinDCX.

Stay up to date with crypto news, get daily updates in your inbox.


Comments are closed.