Why did the ED raid CoinDCX and Delta Exchange? What users should know

Indian traders could use rupees to open positions tied to Bitcoin or Tesla. The Enforcement Directorate wants to know who placed the corresponding trades abroad, how those positions were funded and whether the exchanges followed India’s foreign exchange rules. Summary The Enforcement Directorate searched three Bengaluru premises linked to CoinDCX and Delta Exchange India on 4 and 5 November in a foreign exchange investigation. The agency alleges that CoinDCX used USDT and offshore accounts to execute spot orders and open corresponding crypto derivatives positions on overseas platforms. CoinDCX says the visit to its office was a routine enquiry, it complies with FEMA, and trading, deposits and withdrawals remained operational. Delta says its INR-settled business does not involve cross-border transfers of virtual digital assets, while the ED alleges that derivatives activity went through CoinDCX. The agency describes trading volumes in the thousands of crores, with separate allegations concerning fees and transfers to foreign affiliates worth hundreds of crores. India’s Enforcement Directorate has searched three Bengaluru premises linked to CoinDCX and Delta Exchange India over suspe...