The Directorate of Enforcement (ED) of India

Enforcement Directorate (ED) Of India Calls Out Exchanges, Seeks Info Regarding Transactions

  • The Enforcement Directorate (ED) asked crypto exchanges for additional details on transactions.
  • The ED is investigating alleged cases of foreign exchange violations in the nation.

The Directorate of Enforcement (ED) of India has issued notices to crypto exchanges and demands additional information as it continues to investigate alleged instances of foreign exchange violations, if any, committed by these firms.

According to a report from a local media outlet, the ED is seeking additional information under the Foreign Exchange Management Act (FEMA). Under FEMA, any payment sent to a person outside of the nation or any forex deal is regulated.

The multi-disciplinary organization that investigates money laundering in the nation was also joined by the CEO of Indian crypto exchange CoinDCX, Sumit Gupta, in its investigation. Additionally, executives at other cryptocurrency exchanges like CoinSwitch Kuber were also called upon, and the ED sought information regarding certain transactions from the executives.

“Transaction history, relationship with foreign exchanges, how much money is going out of India – ED is examining every detail on offshore transactions. 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.”

An official said.

Indian authorities remain on high alert when it comes to the usage of cryptocurrencies. Recently, the biggest crypto exchange in the country in terms of trading volume, WazirX, was investigated by the ED, wherein it was asked to explain transactions worth $353 million. The ED believed that the amount was involved in crypto transactions that violated FEMA rules.

India and cryptocurrencies

The Indian government hasn’t been soft with crypto investors, imposing a tax of 30% from April 1, 2022, followed by a TDS of 1% on every transaction from July 1, 2022. In the aftermath of the new rules, the trade volumes on three popular Indian exchanges have dropped by almost 72.5% on average, and as a result, the revenues of Indian exchanges are extremely poor.

An interesting fact to note here is that the government of India has taxed cryptocurrencies in the nation but has stressed the fact that this does not mean that these blockchain-based assets are legal in the nation.

Parth Dubey Verified

A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.

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