CoinSwitch Kuber, which was introduced in India in 2020, is one of the major cryptocurrency exchanges there with more than 18 million registered users. A representative from the Bangalore Cell of the ED was quoted by local media sites as saying that at least five locations connected to the trading platform were searched on Thursday. The raid was carried out in connection with the Foreign Exchange Management Act (FEMA), based on the anonymous tip.
The headquarters of CoinSwitch Kuber as well as the homes of its directors and CEO Ashish Singhal were reportedly searched by India's Enforcement Directorate, in accordance with a source from Bloomberg on Thursday. As per a person who spoke to the outlet, the cryptocurrency exchange is suspected of breaking FX regulations by purchasing shares valued more than $250 million and of not adhering to specific Know Your Customer (KYC) requirements.
According to the WikiBit website—CoinSwitch has no regulatory authentication with a score of 4.05.
Since WazirX, a trading company related to Binance, was raided earlier this month, the attack on digital currency trading platforms in India is no longer breaking news. While WazirX's $8 million worth of assets were frozen as a result of allegations that the company assisted in money laundering for Chinese loan applications. The requirement for regulators to confirm that digital currency trading platforms adhere to established money laundering norms has given rise to a significant trend of regulatory review of these platforms. There is no guarantee that the enforcement action against the trading platform and WazirX are related, and the precise charges against CoinSwitch Kuber have not yet been well established.
As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!
iOS: t.ly/UUCj
Android: t.ly/cfYt