Indian enforcement agency raids premises linked to CoinDCX and Delta Exchange

what happened

The Enforcement Directorate (ED) in Bengaluru has searched three premises linked to the crypto platforms CoinDCX and Delta Exchange, according to TradingView. The searches took place on November 4 and 5, and the agency announced them in a post on X on November 6. The probe falls under the Foreign Exchange Management Act (FEMA) of 1999.

According to the ED's preliminary findings, rupee deposits on CoinDCX were converted into USDT and sent to overseas exchanges including Binance, KuCoin and Gate.io. The agency said the transactions were routed through an account held by a Costa Rica-based entity that it called a paper company. It put the volume of cross-border spot trades in the thousands of crores of rupees.

The ED also says Delta Exchange India sent a large volume of futures, options and tokenised stock trades through CoinDCX, and moved hundreds of crores of rupees to overseas associates. The agency is also reviewing whether both platforms' products comply with several Indian laws. Further investigation is ongoing.

why it matters

For markets, the story signals tighter scrutiny of cross-border crypto flows in India. The allegations concern foreign exchange rules rather than the tokens themselves, but stricter enforcement could constrain local platforms and draw attention to stablecoin transfers such as USDT. No final decisions have been announced.

market impact

Indian crypto market: pressure on CoinDCX and Delta Exchange from the FX probe

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