Indian Authorities Investigate CoinDCX and Delta Exchanges
Probe examines alleged irregular cross-border transactions and the use of shell entities to trade derivatives.
India's Enforcement Directorate conducted searches at CoinDCX and Delta Exchange offices in Bengaluru. The operation investigates alleged violations of the country's Foreign Exchange Management Act regarding cross-border transactions.
The regulator claims that the platforms moved hundreds of millions of dollars without authorization. The companies allegedly used a Costa Rica-based entity to route orders from Indian users to foreign exchanges such as Binance and Bybit.
The investigation indicates that rupee deposits were converted into stablecoins to facilitate trading in derivatives and tokenized stocks. The agency states that orders for assets like Apple and Tesla were executed on decentralized platforms without legal permission.
CoinDCX and Delta Exchange stated that their trading, deposit, and withdrawal operations remain functional. Delta denied any cross-border digital asset transfers during the period under review.
The case reinforces global regulatory pressure on capital flows in digital assets. Strict oversight of the use of foreign exchanges may increase liquidity risks for users operating in jurisdictions with rigid currency controls.
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