The Enforcement Directorate (ED) has sent notices to major cryptocurrency exchange firms such as CoinDCX and CoinSwitch. Summons have been sent to both these agencies and officials have been called up for investigation. These firms have been under the radar of ED for quite some time in connection to violations. Which were made under the Foreign Exchange Management Act (FEMA). The case has been registered with the Bangalore office of the ED. Sumit Gupta, the creator of CoinDCX, has previously been questioned at the ED headquarters in Bengaluru. After being called, he had his comments videotaped.
“We receive queries from various government agencies. Our approach has always been that of transparency. Crypto is an early-stage industry with a lot of potentials and we continuously engage with all stakeholders”. A CoinSwitch spokesperson said.
The transactions carried out by these two companies over the preceding three years will be examined, and their Chartered Accountants (CA) will also be questioned, according to ED sources. The ED had previously requested information from the cryptocurrency exchange WazirX in June 2017 for suspected violations of the Foreign Exchange Management Act involving bitcoin transactions of Rs 2,790.74 crore.
