Just In: More Trouble For India’s Crypto Ecosystem With Latest Enforcement

Source : coingape.com

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While the plummeting trading volumes have already put Indian exchanges in a bad state, the country’s authorities made another move. India crypto space is under strict vigilance from authorities. The country’s Directorate of Enforcement (ED) is moving fast ahead in its probe into any possible foreign exchange crimes.

New Taxation On Crypto Badly Affects India Crypto

After the Indian government imposed a 1% tax on all transactions, trading volumes have significantly dropped on Indian exchanges. Indian crypto investors are already subjected to a high tax of 30% on profits. In a latest, the ED asked cryptocurrency companies for more information and documents as part of the investigation.

According to a report from The Economic Times, the ED sought more information on the transactions from several top Indian crypto companies. The Foreign Exchange Management Act (FEMA) rules allow the country’s authorities to seek the information. India’s FEMA rules provides for maintenance of foreign exchange market in the country.

The ED is reportedly examining all details of the offshore transactions made by the Indian exchanges. The Indian authorities are assessing as to how much of domestic funds went outside of the country. For that purpose, transaction histories and the companies’ relationship with foreign exchanges is under the radar.

The report quotes an ED official as saying,

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“Information has been sought from the exchanges and in certain cases their executives have also joined the probe. The documents are being examined and if need be, they could be called again.”

Top Exchanges Get ED Notices

A representative from CoinDCX said the ED sent notices to major exchanges in India crypto ecosystem. The notices sought information and data on how the crypto platforms work. “As required, we have shared all necessary information to the satisfaction of the department and no subsequent action is pending at our end.”

CoinSwitch Kuber, another Indian exchange, also said it received queries from government agencies, as per the report. Crypto is an early-stage industry with a lot of potential and we continuously engage with all stakeholders, a company representative state.

Anvesh reports major developments around crypto adoption and price analysis. Having been associated with the industry since 2016, Anvesh is a strong advocate of decentralized technologies. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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