Indian Regulators Probe CoinDCX and Delta Exchange Over Forex Violations
India’s Enforcement Directorate has searched the premises of crypto exchanges CoinDCX and Delta Exchange India regarding alleged unauthorized cross-border transactions.
The Enforcement Directorate (ED) of India conducted searches at premises linked to CoinDCX and Delta Exchange India between November 4 and 5. The agency is investigating allegations that the two platforms facilitated unauthorized financial transactions involving crypto derivatives and tokenized foreign stocks, reportedly involving billions of rupees.
The ED alleges that the exchanges converted user funds into stablecoins, primarily USDT, to transfer capital to overseas crypto platforms, thereby circumventing Foreign Exchange Management Act (FEMA) regulations. Investigators claim CoinDCX routed transactions through a Costa Rican entity to mask the origin of funds, while also executing derivatives trades directly on foreign interfaces via APIs.
Delta Exchange India stated that it cooperated with officials and denied involvement in illegal cross-border asset transfers. CoinDCX has not yet issued a formal statement. This investigation follows a series of recent regulatory actions by the ED against several crypto firms operating within the Indian market.