India has increasingly increased regulatory pressure on crypto companies and another crypto currency exchange has come under the Radar of the Enforcement Agency and this time it is CoinSwitch Kuber. Sleuths from the enforcement directorate have been scrutinizing the dealings of the company and searches have been conducted in the premises of top Indian exchange CoinSwitch Kuber.
The search were related to the Indian Foreign Exchange Management Act (FEMA). This is the second instance when the crypto ecosystem has come under the scrutiny of the enforcement authorities.
CoinSwitch Kuber Raid – Money Laundering Suspected
The raids were conducted simultaneously at five locations where the crypto exchange was situated. The Agency is looking at multiple violations under FEMA. An official with the Enforcement Directorate said,
“We are looking into multiple possible contraventions under FEMA and other entities that are connected to it. Since we did not receive the desired cooperation, we have conducted searches on residences of directors, the CEO and the official premises of the exchange.”
Indian Sleuths Continue Crypto Scrutiny
The latest searches in CoinSwitch Kuber premises appears to be a part of a series of investigations on varied domestic companies involved in different tasks with the crypto currency sector reports the Business Standard. The need for bringing the crypto sector under some form of regulatory authority has gained further significance especially after the Terra Crash which led to the Crypto Crash of June.
At the start of this month, one more crypto currency exchange, WazirX also came under the scrutiny of the Enforcement Directorate. It raided the residences of exchange’s director and it led to the freezing of bank assets of the company worth $8.13 million. The enforcement directorate indicted the crypto exchange for becoming a conduit for money laundering by an instant loan app company. The money was laundered by using virtual crypto assets, the agency said at the time.