Indian Authorities Search Crypto Exchange Coinswitch Kuber — CEO Says It"s Not Related to Money Laundering
India’s Enforcement Directorate (ED) has conducted searches at five premises linked to popular cryptocurrency trading platform Coinswitch Kuber. The company says its engagement with the ED was not related to any money laundering inquiry. The federal agency recently froze the assets of two other crypto firms, Wazirx and Vauld. Coinswitch Kuber Next on ED’s List
The Enforcement Directorate (ED), the law enforcement and economic intelligence agency of the government of India, carried out searches at five locations linked to popular crypto trading platform Coinswitch Kuber Thursday.
The cryptocurrency trading platform is backed by a number of global venture capitalists, including Andreessen Horowitz (A16z), Tiger Global, Coinbase Ventures, and Sequoia Capital. Coinswitch claims to be India’s largest crypto app, with over 18 million registered users. The platform, which is one of India’s largest cryptocurrency exchanges, achieved unicorn status last year.
Coinswitch Kuber CEO Ashish Singhal took to Twitter to explain the situation Saturday. He stressed that his company’s engagement with the ED Bangalore is “not about money laundering or PMLA [Prevention of Money Laundering Act].” He clarified: “Enforcement Directorate – Bengaluru has been engaged with us with respect to functioning of our crypto platforms / exchanges. We are fully cooperating with them.”
“As an industry leader in India and one of the most compliant crypto platforms, we have been engaged in constructive dialogues with various stakeholders to help them understand our business models, best compliance practices, thereby bringing more clarity on such matters,” the CEO tweeted.
According to Bloomberg, the ED searched office facilities and residences of directors and the CEO of the Bengaluru-based crypto exchange. Citing a person with knowledge of the matter, the publication added without providing specifics that the trading platform is under suspicion of acquiring shares worth over 20 billion rupees ($250 million) in violation of the country’s forex laws.
The Economic Times (ET) reported that the searches were related to money laundering. “The agency has found them to be in violation of section 11 (A) of the PMLA Act, which requires every reporting entity to verify the identity of its clients and the beneficial owner,” the publication described, citing a source privy to the investigation. The person added: “The probe has found their (KYC) to be either bogus or dubious in more than 80% of the cases.”
The news outlet recently reported that the ED is probing at least 10 cryptocurrency exchanges for allegedly laundering more than 1,000 crore rupees identified as proceeds of crime raised by 365 instant loan apps.
Earlier this month, the ED conducted searches on one of the directors of Zanmai Labs, which owns cryptocurrency exchange Wazirx. The authority subsequently issued an order freezing more than $8 million in bank assets of the crypto exchange. A week later, the ED froze crypto and bank assets of Peter Thiel-backed crypto trading and lending platform Vauld totaling more than $46 million. Tags in this story coinswitch kuber, Coinswitch Kuber ED, Coinswitch Kuber searched, ED, India, indian crypto exchanges, indian cryptocurrency exchanges, indian government, Vauld, Wazirx
What do you think about the ED searching five premises of Coinswitch Kuber? Let us know in the comments section below. Kevin Helms
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Singapore Seeks Detailed Information From Crypto Firms Ahead of New Regulations, Report Unveils REGULATION | 17 hours ago Philippine Lawmakers, Central Bank, SEC Discuss Crypto Regulation in Senate Hearing REGULATION | 2 days ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleWhile the Merge Led the Bear Market Rise, Hype Has Been Erased and Ethereum Now Leads the Slide Next articlePowell Says Fed’s Battle With Inflation Will Bring ‘Some Pain,’ After Insisting Last Year Elevated Inflation Is ‘Likely to Prove Temporary’ Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItRipple CEO: SEC Lawsuit Over XRP "Has Gone Exceedingly Well"
The CEO of Ripple Labs says that the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against him and his company over XRP "has gone exceedingly well." He stressed: "This case is important, not just for Ripple, it’s ... read more.Central Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto Digital Ruble ‘Much Needed,’ Russia’s Central Bank Says, Won’t Delay Testing