thecoinrise.com
As the authorities in India continue its crackdown on crypto firms on fraud allegations, its searchlight has beamed on another crypto firm, this time CoinSwitch Kuber.
The India Enforcement Directorate (ED) has reportedly raided properties belonging to CoinSwitch Kuber for allegedly violating forex laws. This is according to reports from Bloomberg.
The exchange is under suspicion of acquiring shares of over 20 billion rupees ($250 million) in contravention of forex laws. The exchange was also found non-compliant with certain know-your-customer (KYC) requirements.
According to the reports citing anonymous sources, the search was carried out in five locations including office facilities and the residence of some of its executives. The agency raided these properties because the exchange was uncooperative according to an official with the agency.
The Andreessen Horowitz-backed exchange has a valuation of about $2 billion.
India’s Enforcement Directorate intensifies efforts
The collapse of the Terra-Luna network and the consequent effect on the ecosystem have led to faster regulatory reforms on crypto-related transactions in several climes.
Just like CoinSwitch the ED raided the properties of the country’s largest exchange WazirX and that of one of its directors. It also seized about $8.1 million in assets belonging to the exchange. According to the ED, the Binance-owned exchange is aiding loan app companies suspected of predatory activities to launder funds via crypto.
Earlier in the month, the agency froze $46 million belonging to Flipvolt, an Indian subsidiary of troubled crypto lender Vauld for its lax checks that aided the laundering of illegal funds.
The lender at the time said it disagreed with the freeze order as it was cooperative throughout the investigative process and will consult with its lawyers for a possible next line of action.
The ED is also reportedly investigating over 10 crypto firms for their role in helping instant loan apps launder illicit funds.
Although there is no ban on cryptocurrency in India, the heightened scrutiny by regulators together with its hefty tax policy is a limiting factor for the growth of the nascent economy in India.