India’s Enforcement Directorate (ED) searches three premises connected to cryptocurrency exchanges CoinDCX and Delta Exchange India, investigating allegations of unauthorised cross-border financial transactions. The searches are linked to suspected use of spot trading, futures and options in crypto tokens, and trading in tokenised stocks of foreign companies.
According to the ED, customer rupee funds are converted into USDT and routed to overseas crypto exchanges to execute trades. The investigation is reported to be focused on whether the exchanges acted without the necessary approvals under the Foreign Exchange Management Act (FEMA). Coverage cites that the searches were conducted by ED’s Bengaluru Zonal Office under FEMA’s relevant provisions.
Outlets broadly agree on the core allegations: ED is probing whether CoinDCX and Delta Exchange bypass FEMA’s cross-border framework using USDT and offshore trading venues. Differences mainly lie in the amount of background provided and which specific product and compliance details are emphasised.
