Indian crypto exchange CoinSwitch Kuber CEO Ashish Singhal said Saturday "we are fully cooperating" with the Enforcement Directorate, two days after searches at five locations by the financial crimes agency.
Disclosing the news of the searches on Thursday, the Bangalore cell of India's Enforcement Directorate told CoinDesk, "Searches were conducted since we did not receive the desired cooperation from CoinSwitch Kuber."
Two days later, the CEO of the exchange took to Twitter, apparently seeking to clarify that the "engagement with the ED" is not about money laundering or India's Prevention of Money Laundering Act. In its earlier report, CoinDesk said the searches were in connection with India's Foreign Exchange Management Act (FEMA). In his Twitter thread, Singhal did not state what prompted the searches.
CoinSwitch didn't immediately respond to a request for further comment.
"Cryptos are not yet clearly classified in most parts of the world," Singhal tweeted, seeking to explain his crypto platform's position. "Now, the law (in India and elsewhere) is still assessing if crypto is a “commodity,” “security,” “currency” or something new. This is a work in progress. CoinSwitch Kuber is committed to building a responsible crypto ecosystem that contributes to the Indian Economy."
Singhal pointed to Australia, where "token mapping" is being carried out to understand the classification of crypto, and the United States, where "there is ongoing debate whether some crypto are considered commodities, others securities."
India's Enforcement Directorate did not immediately respond to a request for comment.