Ashish Singhal, co-founder and CEO of CoinSwitch Kuber, explained on Twitter that his company is working with India's Enforcement Directorate (ED) after the ED conducted raids on the director's homes, the offices of the cryptocurrency exchanges, and Singhal's home. Singhal claims that the ED is working with CoinSwitch Kuber to learn how the cryptocurrency exchange operates, despite initial reports suggesting that the raids were carried out in connection with a possible violation of the Foreign Exchange Management Act (FEMA) regulations.
According to Singhal's letter, "Enforcement Directorate - Bengaluru has been engaged with us with respect to the operation of our crypto platforms / exchanges." "We are working closely with them."
Last week, reports from Bloomberg and CoinDesk suggested that the searches had something to do with the nation's laws governing foreign exchange. For months, Indian authorities have been looking into the ecosystem of the country's cryptocurrency exchanges.
Singhal emphasised the still-uncertain state of cryptocurrency law in India rather than discussing the specifics of the Enforcement Directorate's operations.
"A new asset class is cryptocurrency. In most regions of the world, cryptos are still in their early phases and are not yet fully categorised. Currently, the law (in India and abroad) is determining if cryptocurrency is a "commodity," "security," "currency," or something else entirely "Singhal composed. "We're still working on this,"
Reuters reported on Saturday that bank data were confiscated during the office checks and investigators inquired about "foreign investments, income and outflows to check on compliance," according to a source familiar with the procedure.
According to Singhal in the Twitter thread, CoinSwitch "is committed to developing a responsible crypto ecosystem that helps to the Indian Economy, and provides wealth and jobs for millions of Indians."
In October of last year, CoinSwitch raised $260 million (approximately Rs. 2,076 crore) in a Series C fundraising round and is supported by a number of top venture capital firms, including Andreessen Horowitz (a16z) and Tiger Global.
