CoinSwitch Kuber Under ED’s Lens on Suspicion of Violating Forex Laws

India’s financial watchdog, the ED, is also investigating CoinSwitch for not keeping certain know-your-customer (KYC) requirements in compliance with India’s laws.

By Radhika Parashar | Updated: 26 August 2022 11:19 IST

CoinSwitch Kuber Under ED’s Lens on Suspicion of Violating Forex Laws

Photo Credit: CoinSwitch Kuber

Indian crypto exchanges have been going through a rough spell in recent times

Highlights

Offices and residences of CoinSwitch executives searched by ED
ED has not revealed any information on its findings
CoinSwitch has vouched coordination with agencies

India's Enforcement Directorate (ED) raided five properties associated with CoinSwitch Kuber on August 25, as it opened an investigation on the crypto exchange for allegedly violating forex laws. The company, founded in 2017, is being probed to check if it acquired shares worth more than $250 million (roughly Rs. 1,997 crore) in contravention of forex laws. India's financial watchdog, the ED, is also investigating CoinSwitch for not keeping certain know-your-customer (KYC) requirements in compliance with India's laws.

CoinSwitch shared a rather generic statement on this development, that vouched coordination with the government agencies.

“We receive queries from various government agencies. Our approach has always been that of transparency. Crypto is an early-stage industry with a lot of potential and we continuously engage with all stakeholders,” said a company spokesperson.

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As for now, the ED has not shared elaborate details on its findings from searching CoinSwitch-related premises.

As per a report by CoinTelegraph, the offices and residences of senior CoinSwitch executives were also not spared from being searched by the ED officials.

Indian crypto exchanges have been going through a rough spell in recent times.

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Back in July, CoinSwitch Kuber, along with CoinDCX and WazirX were served notices by the ED over alleged money laundering practices.

In August, the ED also opened a probe on WazirX crypto exchange over alleged predatory lending practices. As per the investigating authorities, a bunch of Chinese firms in the loan lending business, that were banned from operating in India, were using WazirX to wire their funds internationally via cryptocurrencies.

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 practice caution with their investments and safeguard themselves from financial risks.

At this point, India has over 115 million crypto investors, making for 15 percent of its massive population, a report by KuCoin crypto exchange recently said.

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Further reading: Cryptocurrency, CoinSwitch Kuber, India, WaxirX, ED

Radhika Parashar

Email Radhika

Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More