Just In: More Trouble For India’s Crypto Ecosystem With Latest Enforcement

Anvesh Reddy
July 6, 2022
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
crypto india

While the plummeting trading volumes have already put Indian exchanges in a bad state, the country’s authorities made another move. India crypto space is under strict vigilance from authorities. The country’s Directorate of Enforcement (ED) is moving fast ahead in its probe into any possible foreign exchange crimes.

Advertisement
Advertisement

New Taxation On Crypto Badly Affects India Crypto

After the Indian government imposed a 1% tax on all transactions, trading volumes have significantly dropped on Indian exchanges. Indian crypto investors are already subjected to a high tax of 30% on profits. In a latest, the ED asked cryptocurrency companies for more information and documents as part of the investigation.

According to a report from The Economic Times, the ED sought more information on the transactions from several top Indian crypto companies. The Foreign Exchange Management Act (FEMA) rules allow the country’s authorities to seek the information. India’s FEMA rules provides for maintenance of foreign exchange market in the country.

The ED is reportedly examining all details of the offshore transactions made by the Indian exchanges. The Indian authorities are assessing as to how much of domestic funds went outside of the country. For that purpose, transaction histories and the companies’ relationship with foreign exchanges is under the radar.

The report quotes an ED official as saying,

“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.”

Advertisement
Advertisement

Top Exchanges Get ED Notices

A representative from CoinDCX said the ED sent notices to major exchanges in India crypto ecosystem. The notices sought information and data on how the crypto platforms work. “As required, we have shared all necessary information to the satisfaction of the department and no subsequent action is pending at our end.”

CoinSwitch Kuber, another Indian exchange, also said it received queries from government agencies, as per the report. Crypto is an early-stage industry with a lot of potential and we continuously engage with all stakeholders, a company representative state.

Advertisement
coingape google news coingape google news
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Anvesh reports major crypto updates around U.S. regulation and market moving trends. Published over 1400 articles so far on crypto and blockchain. A proud dropout of University of Massachusetts, Lowell. Can be reached at [email protected] or x.com/BitcoinReddy or linkedin.com/in/anveshreddybtc/
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.