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The Indian rupee has not been in a great state, on account of the rising dollar index and economic worries, Indian Rupee weakened to a fresh record low of 79.41 against the US dollar (USD). Underscoring a dramatic collapse this year in a journey that includes a breach of several key psychological levels. That is something none expected, even in their wildest predictions at the start of 2022, when the Indian rupee was trading around 74 against the greenback. The news flow in recent months has read that the rupee hits a new all-time low almost every other day. But now, the Indian Government is taking it all out of crypto exchanges. According to the Economic Times, India's Directorate of Enforcement (ED) has issued notices to crypto exchanges seeking more information on supposed foreign exchange violations by those entities.
Under FEMA, payments made to any person outside India or receipts from them, along with forex deals and foreign security are restricted. The objective of the Act is to facilitate external trade and payments and for promoting the orderly development and maintenance of the forex market in India. "Transaction history, relationship with foreign exchanges, how much money is going out of India – ED is examining every detail on offshore transactions," an official said.
Cryptocurrency exchange WazirX has paused all deposit services via any mode of net banking, such as NEFT, or IMPS. The only way left out for users is the P2P service. Peer-to-Peer trading (P2P) allows the buying and selling of cryptocurrencies without the need of any third party or intermediary.
Indian crypto exchange CoinDCX has restricted crypto deposits and withdrawals for multiple users, it said in a blog post this week, citing compliance, risk, and monitoring requirements. Due to enhanced requirements for seamless rupee deposits & withdrawals, CoinDCX has been strengthening its compliance and risk framework, the company said.
Coinswitch Kuber has also suspended crypto withdrawal services, citing KYC requirements. The platform responded to a Twitter user, saying deposits and withdrawals have been disabled because it needs further clarity from regulators and policymakers.
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