CoinSwitch’s CEO said in a statement that CoinSwitch is collaborating with the national financial crime agency to learn about its business model and user acceptance processes.
The CEO says CoinSwitch, worth $1.9 billion, is the largest crypto company in India with over 18 million registered users.
CoinSwitch Collaborates with the Executive Directorate of India
Speaking publicly for the first time about the recent call, CEO Ashish Singhal said that his company has been in touch with the Indian Executive Directorate’s unit in Bengaluru, the technology hub, regarding the functioning of the crypto platform.
In a statement on the subject, Singhal said:
“Most of his interactions with us have been about knowing what CoinSwitch does. These investigations included details about the operations of crypto exchanges, how they involve their users in their systems, and getting to know the customer.”
One person with direct knowledge of the matter said the case concerned suspected violations of India’s foreign exchange laws. The source added that agents inquired about foreign investments, entries and exits, as well as confiscated financial documents to check compliance.
The investigation into CoinSwitch was made amid tightening regulatory scrutiny of the crypto industry in India. The financial crimes agency froze the assets of cryptocurrency exchange WazirX this month to investigate whether it had a role in helping instant loan app companies launder suspicious proceeds by converting them into cryptocurrencies on its platform.
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