The cryptocurrency exchange CoinSwitch Kuber is cooperating with India’s Enforcement Directorate (ED), and the earlier searches at the company’s offices are not related to money laundering. This was stated by the platform’s chief, Ashish Singhal.
There are many media reports doing the rounds about the recent engagement of ED Bangalore with @CoinSwitchKuber. So let me clear the air.
• First of all, the last few days’ events are not about money laundering or PMLA.
Here’s what is happening:
— Ashish Singhal (@ashish343) August 27, 2022
According to Singhal, the ED is interested in \”the functioning of crypto platforms/exchanges\”. He did not disclose details and stated that the company \”is fully cooperating\” with the authorities.
“Cryptocurrency is a new asset class. In its early stages, cryptocurrencies are not yet clearly classified in most parts of the world. The law (in India and other countries) is still assessing whether cryptocurrency is a ‘commodity’, a ‘security’, a ‘currency’, or something ‘new’”, wrote the exchange’s CEO.
He added that the company \”aims to build a responsible crypto ecosystem that contributes to India’s economy\”.
Earlier, the Bengaluru-based platform was backed by Paradigm, Sequoia and Tiger Global. In October 2021, following a $260 million funding round, which was led by Coinbase Ventures and a16z, CoinSwitch reached unicorn status.
In spring 2022, CoinSwitch, along with other Indian digital-asset platforms, faced tax evasion charges.
On August 26, Bloomberg reported about raids at the offices and homes of the company’s CEO and directors.
As reported in August, the ED accused another major Indian cryptocurrency exchange, WazirX, of currency-rule violations and money laundering totalling $350 million.
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