The actions of CoinSwitch Kuber have come under investigation by the Indian government, and the CEO of the firm has stated that the investigation is being conducted because the government is interested in learning more about what the company does.
In an interview that took place over the weekend with Reuters, Ashish Singhal, the CEO of the cryptocurrency exchange CoinSwitch Kuber, stated that the current investigation that the Indian government has been doing into the company is to learn what the company does.
Singhal stated that CoinSwitch is currently interacting with the unit of the Indian Enforcement Directorate that is located in the tech hub of Bengaluru. He said;
The majority of their interaction with us has been focused on gaining an understanding of what CoinSwitch is and how it works. The chief executive officer stated that the government was interested in learning more about the operations of cryptocurrency exchanges, the process by which new customers were signed up, and specifics regarding know-your-customer regulations.
Reuters was told by a source with knowledge of the situation that the issue is related to possible violations of India’s laws governing the foreign exchange market. According to the source, the Indian government is investigating the company in order to discover more about its international investments, income, and outflows in order to check on compliance, and they have confiscated financial documents.
On the other hand, Singhal chose not to elaborate on the particular claims made by the agency, noting the sensitivity of the matter from a legal standpoint.
Additionally, the Enforcement Directorate did not immediately react to Reuters’ request for a response after the news organization made the request. Investigations into the cryptocurrency exchange began at the same time as the government of India was looking into ways to tighten laws on the cryptocurrency industry.
The regulatory body is also investigating WazirX, which is recognized as one of the most important cryptocurrency exchanges in the country. The agency froze $8 million worth of WazirX’s assets at the beginning of this month, citing a possible role in helping instant loan app companies launder criminal funds by converting them into cryptocurrencies on the platform. The agency made this decision because of the possible role that WazirX may have played in this activity.
WazirX has responded by saying that these charges are false. Binance, the most prominent cryptocurrency exchange in the world, has refuted rumors that it acquired WazirX as a result of this lawsuit. The cryptocurrency exchange situated in India asserted that Binance had successfully completed the deal, but Binance maintains that this is not the case.
The Indian government has stated that it is undertaking investigations into allegations of money laundering against a number of shadow banks as well as the fintech companies associated with them. They are currently being investigated by the agency for the possibility that they violated the norms of the central bank as well as engaged in predatory lending practices. The article The government’s probe is to know what we do, says CoinSwitch CEO appeared first on CoinJournal.com.