Breaking: CoinSwitch Kuber Raided By Indian Enforcement Agency

In the wake of increased regulatory pressure on crypto companies in India, another cryptocurrency exchange became subject of scrutiny. On Thursday, India’s Enforcement Directorate began searching the premises of top Indian exchange CoinSwitch Kuber. The searches, as per a CoinDesk report, are in relation to the Indian Foreign Exchange Management Act (FEMA). The CoinSwitch Kuber raid is the second such incident this month in the Indian crypto ecosystem.

CoinSwitch Kuber Raid – Foreign Transactions

The report added that the raids were being conducted at as many as five locations belonging to the crypto exchange. Quoting an official at the Bangalore cell of the Enforcement Directorate, the report mentioned that the agency is looking into multiple possible contraventions under FEMA.

“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.”

Indian Authorities Continue Crypto Scrutiny

The searches in CoinSwitch Kuber’s premises appear to be part of the agency’s series of investigations on various domestic companies. However, it remains to be seen if these searches result easier regulatory scrutiny on the industry going forward. Recent failures of crypto companies like that of the Terra network led to faster regulatory reforms on the operation of crypto transactions.

Earlier this month, another Indian cryptocurrency exchange WazirX came under the Enforcement Directorate’s radar. The agency’s officials had on August 5 searched the premises of the exchange’s director. The raid resulted in freezing of the company’s bank assets worth nearly $8.13 million.  The authorities accused WazirX of aiding instant loan app companies in money laundering. The money was being transferred via virtual crypto assets, the agency said at the time.

On the positive side, key influencers in the country had recently launched the India Blockchain Forum. The government of India’s Telangana province launched the forum with support from around 40 key influencers. The aim of the forum is to to make India a global hub in the web 3.0 sector.