{"id":247097,"date":"2022-07-06T15:40:41","date_gmt":"2022-07-06T14:40:41","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=247097"},"modified":"2022-07-06T17:22:12","modified_gmt":"2022-07-06T16:22:12","slug":"india-is-investigating-crypto-exchanges-compliance-to-foreign-exchange-laws","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/india-is-investigating-crypto-exchanges-compliance-to-foreign-exchange-laws\/","title":{"rendered":"India is investigating crypto exchanges compliance to foreign exchange laws"},"content":{"rendered":"

India's Directorate of Enforcement has sent notices to crypto exchanges to determine whether they violated the country's\u00a0Foreign Exchange Management Act (FEMA), Economic Times India<\/em> reported<\/a>.<\/p>\n

According to the report, the regulator summoned several crypto executives from top exchanges like CoinDCX and Coinswitch Kuber to answer questions about some transactions.<\/p>\n

An unnamed government official reportedly said the authorities were investigating every detail of transactions sent abroad.<\/p>\n

According to the report,<\/p>\n

Transaction history, relationship with foreign exchanges, how much money is going out of India – ED is examining every detail on offshore transactions. Information has been sought from the exchanges and in certain cases their executives have also joined the probe.<\/p><\/blockquote>\n

WazirX told CryptoSlate,<\/em><\/p>\n

The matter is pending before the Karnataka High Court where the company and its director filed a writ petition and the court has passed an interim order. We have complied with the order. The matter is sub judice.<\/p>\n

WazirX is not the only exchange to have received such a summon.<\/p><\/blockquote>\n

Indian policies affecting crypto exchanges<\/h2>\n

Crypto exchanges in India face a tough time because of the Asian country's crypto policies.<\/p>\n

A WazirX survey revealed<\/a> that India's 30% tax on crypto transactions had impacted the trading frequency of 83% of traders.<\/p>\n

According to the survey, the high taxations have resulted in some Indians considering moving their crypto transactions to foreign exchanges.<\/p>\n

Meanwhile, KYC-compliant crypto exchanges in India have recorded a decline in their transaction volume since July 1 because of the enforcement of the 1% tax deducted from the source rule.<\/p>\n

According to data from Crypto India, WazirX, CoinDCX, and ZebPay recorded a drop of over 90% in transaction volume since July 1.<\/p>\n

\n

1\/ Ever since new crypto tax rules\ud83d\udcdc became applicable, trade volume on Indian\ud83c\uddee\ud83c\uddf3 exchanges continues to tumble \ud83d\udd3b<\/p>\n

Wazirx – $195M\u27a1\ufe0f$4.5M – 98% \ud83d\udd3b
Coindcx – $32M\u27a1\ufe0f$2.1M – 93% \ud83d\udd3b
Zebpay – $19M\u27a1\ufe0f$1.1M – 94% \ud83d\udd3b
Bitbns – $24M\u27a1\ufe0f$19.8M – 17% \ud83d\udd3b (Somehow not affected that much) pic.twitter.com\/0MnT7EFGyg<\/a><\/p>\n

— Crypto India \ud83d\udd11 (@CryptooIndia) July 3, 2022<\/a><\/p><\/blockquote>\n