The Enforcement Authority of India has required the CoinSwitch and CoinDCX platforms to provide transaction data for the last three years to conduct a check on the possibility of violating the currency regulation law.
According to local media, the Indian Enforcement Authority (ED) sent similar requests to other local cryptocurrency exchanges. The agency also asked for documentation relating to their work. This is necessary to conduct checks: can trading platforms violate the Indian Foreign Exchange Act (FEMA). The regulator is going to analyze transactions by interacting with accountants of cryptocurrency exchanges.
CoinSwitch management has confirmed receipt of the request from the Indian regulator and is ready to fulfill it. The representative of CoinSwitch added that the exchange receives numerous requests from various government bodies, therefore it adheres to a transparent approach to working with crypto assets. According to him, the cryptocurrency industry is still at an early stage of development and has great potential, so the exchange is constantly interacting with all interested parties.
Last year, the Enforcement Authority of India accused the WazirX exchange of carrying out illegal transactions with crypto assets worth about $381 million and money laundering. The Mumbai Revenue Service found out that the exchange evaded taxes and did not pay about $5.4 million to the state budget. The situation with WazirX became the reason for more thorough verification of transactions on other Indian platforms for trading cryptocurrencies.
At the beginning of the year, ED employees confiscated digital assets and cash totaling $4.97 million from the organizers of the Morris Coin cryptocurrency pyramid.