The co-founder and CEO of CoinSwitch Kuber has spoken out about the recent searches conducted by the Enforcement Directorate in Bengaluru, India. He clarified that their engagement with the ED was unrelated to any money laundering investigation and that they are cooperating with the agency.
The Crypto Times reported that the national financial-crime agency raided 5 premises associated with the Indian cryptocurrency exchange CoinSwitch Kuber.
CEO Ashish Singhal stated that his company’s involvement with the ED Bangalore is “not about money laundering or the PMLA [Prevention of Money Laundering Act].”
He cleared the air by stating, “Enforcement Directorate–Bengaluru has been engaged with us with respect to the functioning of our crypto platforms/exchanges.”
According to a source with direct knowledge, the case involves suspected violations of India’s foreign exchange laws. However, Singhal declined to elaborate on the agency’s allegations, citing legal sensitivity.
“The classification of crypto and the nature of business models matter, as this decides how and what the laws that govern foreign exchange are, and if at all applicable,” his tweet read.
The action by the financial crimes investigation agency also coincides with an investigation into at least 10 cryptocurrency exchanges in the micro-loan app case.
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