India's Enforcement Directorate (ED) has reported conducting searches at three premises linked to the cryptocurrency platforms CoinDCX and Delta Exchange. The investigative actions took place on November 4 and 5, 2026, in Bangalore as part of an investigation into alleged violations of the Foreign Exchange Management Act (FEMA).
The inspection targeted Neblio Technologies Private Limited, which operates CoinDCX, and Excelium Technologies Private Limited, which is the operator of Delta Exchange India. Law enforcement officers suspect the companies of carrying out unauthorized cross-border transactions using cryptocurrencies and tokenized assets.
According to the investigation, the platforms could have used the USDT stablecoin to conduct transactions through the foreign crypto exchanges Binance, KuCoin, Gate.io, and Bybit.
In particular, law enforcement officers claim that CoinDCX converted client deposits in Indian rupees into USDT and directed the funds to foreign platforms. Accounts of a company registered in Costa Rica were likely used to conduct the transactions, and trading operations were carried out via API.
The investigation is also examining transactions with tokenized shares of Apple, Google, and Tesla. According to Moneycontrol, the regulator believes that operations with these instruments effectively constituted derivatives trading on the decentralized Hyperliquid platform.
The probable volume of cross-border transactions is estimated in thousands of crores of rupees. At the same time, this refers to the turnover of the transactions under consideration, not to established financial losses.
Delta Exchange stated that it continues to operate as usual and is fully cooperating with law enforcement agencies. Company representatives emphasized that trading, deposits, and withdrawals are available, and client assets are safe.
The exchange also rejected assumptions regarding cross-border cryptocurrency transfers, noting that its Indian platform settles exclusively in rupees. According to Delta Exchange representatives, the operator has been registered with India's Financial Intelligence Unit (FIU-IND) since 2023 and complies with current legal requirements.
CoinDCX, in turn, confirmed the visit by ED officials, calling it a routine inspection. The company stated that it had provided the necessary information and continues to serve clients without restrictions.
The investigation sparked a debate about legal uncertainty in the Indian crypto market. Crypto industry representative Abhi Nav noted that the authorities' claims are not related to fraud or theft of funds, but to providing Indian users with access to international markets.
He noted that taxation of cryptocurrency operations has been in place in the country for several years, in particular a 1% tax deducted at source (TDS) and a 30% tax on income from digital assets. At the same time, in his opinion, the authorities have not proposed a clear mechanism for the legal provision of such services.
In another publication, abhitcoin examined the consequences of the investigation for new market participants. According to him, for the past seven to eight months he has been working on developing partnerships and attracting users for Niyam Exchange, focused on derivatives trading in India.
The author believes that checks on the largest platforms could open opportunities for new companies, as users will continue to trade and look for alternative services. In addition, reduced competition potentially lowers promotion costs.
However, the lack of clear regulation creates significant risks for business. Even compliance with current requirements does not guarantee that the exchange's activities will not subsequently be recognized as illegal. Investigations can also complicate cooperation with brokers, educational organizations, and other partners.
“This is a window of opportunity, but a dangerous one. The next 12 months will determine whether those who entered the market earlier will gain the advantage, or whether they will become the next subjects of investigations,” Nav noted.
The situation is developing against the backdrop of discussions regarding further regulation of cryptocurrencies in India. We previously reported that India's central bank advocates banning digital assets outside the regulated financial system.