The Enforcement Directorate (ED) increased searches and inquiries in connection with alleged FEMA and PMLA violations by crypto exchanges in India in recent months.
Under the Prevention of Money Laundering Act, 2022 (PMLA), the ED recently conducted searches at the premises of crypto entities Vauld and WazirX and froze their bank balances totaling INR 370 Cr and INR 65 Cr, respectively. On August 27, it conducted searches at CoinSwitch Kuber’s premises. The ED suspects that many Chinese loan operators used various cryptocurrency exchanges to transfer funds from India to other countries. In light of the ED’s actions as part of the investigation, many cryptocurrency exchanges are considering legal options.
