- CoinDCX founder Sumit Gupta joined the investigation.
- CoinSwitch Kuber was also part of the investigation.
Under the Foreign Exchange Management Act (FEMA), India’s Directorate of Enforcement (ED) has sent notifications to cryptocurrency exchanges requesting additional information and documents as part of its ongoing investigation into any alleged foreign exchange crimes by these companies
An official said;
Information has been sought from the exchanges and in certain cases their executives have also joined the probe. The documents are being examined and if need be, they could be called again.
ED has sent out notices to cryptocurrency exchanges seeking further information under the foreign exchange management act (FEMA)
— Crypto India (@CryptooIndia) July 6, 2022
Multi-disciplinary Organization Investigation
Money laundering and terrorist financing concerns led to the investigation. Every aspect of overseas transactions is being scrutinized by the ED, including transaction history, relationships with foreign exchanges, and the amount of money leaving India.
Sumit Gupta, the founder of the cryptocurrency trading platform CoinDCX, reportedly joined the federal agency’s investigation at its Bengaluru office early this month. Furthermore, executives from other cryptocurrency exchanges, including CoinSwitch and Kuber, were also called in, and the investigation agency demanded information regarding specific transactions.
Transactions to recipients from outside of India are prohibited by FEMA, along with foreign currency transactions and foreign securities. The Act’s purpose is to promote the regular development and maintenance of India’s foreign exchange market as well as to facilitate outside commerce and financial transactions.