- This is the second cryptocurrency exchange in India to be hit this month.
- Many suspected violations of FEMA are now under investigation.
Another cryptocurrency exchange in India came under regulatory investigation as crypto firms came under increasing strain. India’s major cryptocurrency exchange, CoinSwitch Kuber, was raided by the country’s Enforcement Directorate on Thursday. These investigations are being conducted under the Indian Foreign Exchange Management Act (FEMA). This is the second cryptocurrency exchange in India to be hit this month.
There are as many as five facilities associated with the cryptocurrency exchange, the report said. The report cites an officer from the Enforcement Directorate’s Bangalore cell as saying that many suspected violations of FEMA are now under investigation.
The report stated:
“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.”
Crypto Sector Under Scrutiny
The agency seems to be conducting a series of investigations against numerous domestic enterprises, and the searches at CoinSwitch Kuber’s offices are likely a part of that. Whether these investigations lead to lessened oversight from regulators in the future remains to be seen. Regulatory changes regarding the conduct of cryptocurrency transactions have been accelerated in response to recent collapses of crypto firms like the Terra network.
The Indian government’s Enforcement Directorate began investigating cryptocurrency exchange WazirX earlier this month. It’s encouraging that prominent Indians have just established the India Blockchain Forum. About forty influential people helped get the Telangana government in India to organize the forum. With this event, they want to position India as a leader in the web 3.0 industry on a worldwide scale.
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