ED notices to top crypto sites seek info under FEMA

economictimes.indiatimes.com:

cryptocurrency firms as part of its ongoing probe into alleged instances of foreign exchange violations, if any, by these firms, sources said. ED has sent out notices to cryptocurrency exchanges seeking further information under the Foreign Exchange Management Act (FEMA), they added. Crypto trading platform CoinDCX’s founder Sumit Gupta joined the federal agency’s probe at its Bengaluru office earlier this month, the sources said.

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Executives at other crypto exchanges including crypto trading platform CoinSwitch Kuber were also summoned, and the probe agency sought information about certain transactions, at least two people in know of developments told ET. Under FEMA, payments made to any person outside India or receipts from them, along with forex deals and foreign security are restricted. The objective of the Act is to facilitate external trade and payments and for promoting the orderly development and maintenance of the forex market in India “Transaction history, relationship with foreign exchanges, how much money is going out of India — ED is examining every detail on offshore transactions,” an official said. “Information has been sought from the exchanges and in certain cases their executives have also joined the probe. The documents are being examined and if need be, they could be called again,” the official added. Multiple agencies, including the Income Tax department, are probing crypto firms. In June last year, ED had asked India’s