India will check the country's crypto exchanges for compliance with the law

India's Enforcement Authority has required the country's crypto exchanges to provide detailed information about transactions as part of an investigation into possible violations of the currency regulation law.

India's Federal Enforcement Administration (ED), which investigates cases of money laundering and violations of foreign exchange laws (FEMA), has sent inquiries to Indian cryptocurrency exchanges.

According to FEMA, payments to or receipts from any person outside of India, as well as foreign exchange transactions and the purchase of foreign securities, are restricted.

“We requested a history of transactions with foreign exchanges - where and how much money is leaving India. All details of transactions are being studied and, if necessary, the heads of crypto exchanges can be called in to provide explanations,” the ED official said.

CoinDCX CEO Sumit Gupta confirmed that his exchange received a request from ED “to understand how the business works.” In addition, according to Gupta, ED invited the heads of several other crypto exchanges to talk, including CoinSwitch Kuber.

According to aggregator Nomics.com, in the first half of the year, trading volume on Indian crypto exchanges fell by 63% after the introduction of a new one percent “withholding tax” on transactions over Rs 10,000.