Indian cryptocurrency exchange CoinSwitch Kuber had five of its places looked at by anti-money laundering agents on the account of alleged violations of forex laws, as reported by Cointelegraph. A Bloomberg’s report revealed that India’s Enforcement Directorate searched CoinSwitch Kuber’s offices as well as residential locations of its directors and Ashish Singhal, CEO, Coinswitch Kuber.
According to Cointelegraph, going by a source, Coinbase is under surveillance of acquiring shares worth more than $250 million in violation of forex laws, and for being non-compliant with specific know-your-customer (KYC) requirements. As per details from the Directorate of Enforcement’s website, the agency’s main objective is the enforcement of acts, including the Foreign Exchange Management Act and the Prevention of Money Laundering Act. “We receive queries from various government agencies. Our approach has always been aimed at transparency. Crypto is an early stage industry with potential and we engage with all stakeholders,” Coinswitch Kuber said in a statement.
On the basis of information by Cointelegraph, CoinSwitch Kuber claims to have over 18 million registered users. The cryptocurrency exchange achieved the unicorn status last year after raising $260 million in a Series C funding round conducted by Coimbase’s venture capital wing Coinbase Ventures and Andreessen Horowitz, with the company being backed by Sequioa, Paradigm, Ribbit, and Tiger Global. Earlier, Enforcement Directorate seized close to $8.1 million funds from cryptocurrency exchange WazirX, with allegations that the cryptocurrency exchange facilitated transactions by undisclosed financial technology (fintech) firms.
Moreover, Cointelegraph noted that the government introduced two new taxation laws which demanded taxes on cryptocurrency-oriented unrealised gains and transactions. As per insights from a recent survey conducted with 2,042 Indian cryptocurrency investors by CoinSwitch Kuber, it’s been found that 33% of survey respondents expressed concerns with regard to government regulations that could discourage potential investments in cryptocurrency.
(With insights from Cointelegraph)
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