Indian Regulator Asks Crypto Exchanges to Provide Transaction Data

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Enforcement Directorate of Indiademanded that the CoinSwitch and CoinDCX platforms provide transaction data over the past three years to conduct a review of possible violations of foreign exchange regulation laws.

According to local media reports, the DepartmentIndia's Enforcement Directorate (ED) has issued similar requests to other local cryptocurrency exchanges. The department also asked to provide documentation regarding their work. This is necessary to conduct checks: whether trading platforms may violate the Indian Foreign Exchange Management Act (FEMA). The regulator is going to analyze the transactions, interacting with the accountants of cryptocurrency exchanges.

CoinSwitch management confirmed receiptrequest from the Indian regulator and is ready to fulfill it. The CoinSwitch representative added that the exchange receives numerous requests from various government agencies, and therefore takes 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 constantly interacts with all interested parties.

Last year, the Department of EnforcementIndia accused the WazirX exchange of conducting illegal transactions with crypto assets worth about $381 million and money laundering. The Mumbai Tax Service found that the exchange evaded paying 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 cryptocurrency trading platforms.  

At the beginning of the year, ED officers confiscated digital assets and cash totaling $4.97 million from the organizers of the Morris Coin cryptocurrency pyramid.