Shashwati Chowdhury
Published on: July 7, 2022 at 16:58 IST
The cryptocurrency exchange companies CoinSwitch and CoinDCX received notices from the Enforcement Directorate (ED), which is continuing its campaign against cryptocurrency companies. The officials of both crypto firms have received summons.
This comes one year after ZebPay was pulled up by the investigating department for violating foreign exchange laws.
According to sources, the ED has filed a case against CoinSwitch and CoinDCX for violating the Foreign Exchange Management Act (FEMA). The investigating agency is trying to ascertain whether these companies are violating FEMA laws and engaging in foreign exchange violation.
After preliminary investigations, ED officials handed summons for questioning to both crypto exchange firms. The sources also stated that the central agency asked both companies several questions. The investigation team for the ED has also asked various documents from these two cryptocurrency exchange firms.
According to the sources, the ED’s Bengaluru branch has registered an investigation into this case.
It is important to highlight that the information in the present case was received from CoinDCX founder Sumit Gupta, who joined the ED’s investigation earlier this year. According to the sources, ED had at the time extracted important information from Gupta.
The ED asked the cryptocurrency exchange WazirX in June to explain for the alleged violations of the Foreign Exchange Management Act over cryptocurrency deals worth Rs 2,790.74 crore.