Coinbase-backed crypto exchange cooperating with authorities after offices searched: Report
India is leading Cryptocurrency app is reportedly cooperating with investigators after law enforcement authorities searched its premises this week.
Reuters reports mentions that agents from the Enforcement Directorate (ED), India is financial-crime watchdog tasked to examine money laundering and foreign exchange offenses, raided the offices of Cryptocurrency Exchange platform CoinSwitch on Thursday.
Also Read: How To Exchange Cryptocurrency On Coinbase
An unnamed source with direct knowledge of the investigation claims that the search is related to suspected violations of the India is foreign exchange law. The investigators reportedly asked about the exchange platforms foreign investments, income and outflows to check for compliance.
CoinSwitch CEO and co-founder Ashish Singhal refutes that the case is about money laundering though. He refused to provide specifics about the allegations due to the sensitivity of the legal issues, but says that the exchange platform is in talks with the Enforcement Directorate is unit in Bengaluru. The ED unit inquired about how the exchange operates and onboards customers.
Also Read: What Is Coinbase? | How To Use Coinbase Account
“Most of their engagement with us has been about knowing what CoinSwitch does… [The agency] has been engaged with us with respect to functioning of our crypto platform and we are fully cooperating with them.”
The exchange platform claims to be the largest Cryptocurrency firm in the country with over 18 million registered users and more than 500 staffs members.
The exchange firms valuation soared to $1.9 billion in 2021 after a successful funding round that saw investments from leading investors, including Cryptocurrency Exchange Coinbase is investment subsidiary, Coinbase Ventures, and Silicon Valley venture capital firm Andreessen Horowitz (a16z).
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