CoinSwitch Kuber: Searches of crypto exchanges in India continue

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The Indian government continues to take strict measures against cryptocurrency companies. The CoinSwitch Kuber exchange was the next target of the Central Agency for Combating Financial Crimes.
The confrontation between the Indian government and cryptocurrency firms continues. The Enforcement Directorate of India initiated a search of the offices related to the CoinSwitch Kuber crypto exchange. Law enforcement investigated not only the company’s premises but also the private property of its directors and CEO.

According to a Bangalore-based official, who wished to remain anonymous, the reason for the searches was a possible violation of the Foreign Exchange Management Act (FEMA). The allegations included buying more than $250 million worth of stocks without complying with Forex regulations and failing to follow several KYC requirements.

“Since we did not receive the desired cooperation, we have conducted searches on (residences) of directors, the CEO, and the official premises,” he added.

For its part, the crypto exchange has not commented on the situation in detail. Its representative said only about the requests from different regulators and the company’s support of the principle of transparency.

“Crypto is an early stage industry with a lot of potential and we continuously engage with all stakeholders.”

The Indian regulator continues to investigate fraudulent schemes involving local crypto exchanges. According to preliminary reports, at least 10 firms were involved. The total amount of illegal transactions exceeds $130 million.