New Delhi: The Enforcement Directorate has searched premises linked to two crypto exchanges in Bengaluru, alleging unauthorised cross-border transactions in breach of foreign exchange law.
The agency said it searched three premises on November 4 and 5 linked to Neblio Technologies, which operates CoinDCX, and Excelium Technologies, which runs Delta Exchange India, under Section 37 of the Foreign Exchange Management Act, 1999.
The ED alleged both platforms routed customer money abroad to trade derivatives and tokenised shares of foreign firms, though neither was authorised to do so. Its probe found that a large part of Delta's derivatives and tokenised-share trading was routed through CoinDCX, which then executed trades on foreign platforms such as Binance, KuCoin, Gate.io and Bybit.
The agency put the cross-border transactions at several tens of billions of rupees and said it was also examining billions of rupees that Delta allegedly sent to associate entities abroad. It said the products appear to contravene the Securities Contracts (Regulation) Act, 1956, the SEBI Act, 1992 and the RBI Act, 1934, among other laws.
CoinDCX said ED officials visited its Bengaluru office on November 4 as part of a routine inquiry and that it cooperated fully. "We operate in strict compliance with all applicable Indian laws, including FEMA (1999), and also adhere to all KYC, AML and reporting obligations," the company said, adding that trading, deposits and withdrawals remain fully operational.
Delta Exchange India acknowledged the visits and said it is operating as usual, with user funds in Indian banks. "At Delta Exchange India, our business does not involve any cross-border transfer of VDAs in any form or manner," it said, using the abbreviation for virtual digital assets.
The searches add to a widening compliance squeeze on crypto platforms in India, where exchanges have faced tax notices, payment route scrutiny and money-laundering questions in recent years. Further investigation is under way, the ED said.
No charges have been framed and the allegations have not been tested in court.