Summary

  • India's Enforcement Directorate conducted raids on CoinDCX and Delta Exchange on November 4 and 5 2026 over alleged unauthorized cross-border transactions.
  • The probe centers on violations of the Foreign Exchange Management Act through routing of Indian user trades via a Costa Rican shell entity to platforms like Binance and Bybit.
  • These actions occur alongside U.S. implementation of the GENIUS Act on stablecoin activities and broader global crypto regulatory tightening.

India's Enforcement Directorate raided CoinDCX and Delta offices on November 4 and 5 2026. Agents went after unauthorized cross-border deals and FEMA violations. News of the probe broke on November 6.

The raids show stricter forex enforcement in crypto.

Both exchanges report that services kept running without issues.

Context

Regulators in India have zeroed in on cross-border flows for years. The current enforcement push lines up with global shifts. These include the GENIUS Act enacted on July 18 2025.

That law created a U.S. framework for payment stablecoins. The OCC later finalized a rule to implement it.

The ED's moves against CoinDCX fit this tightening scene. Regulators worldwide now close gaps in how crypto platforms handle international trades and derivatives.

Details

The ED alleges that CoinDCX and Delta routed Indian users' trades to Binance, Bybit, and similar platforms through a Costa Rican shell entity. This structure reportedly enabled overseas derivatives trading and tokenised foreign stock products in breach of FEMA.

FEMA violations crypto cases often involve unauthorized foreign exchange dealings. The agency is also examining tokenised assets offered to Indian residents.

"The ED alleges both exchanges were involved in unauthorized cross-border transactions and violations of the Foreign Exchange Management Act."

, Enforcement Directorate reports (finance.yahoo.com)

The exchanges maintain that normal operations continued during and after the searches. No immediate trading halts or user fund issues were reported.

Outlook

Expect regulators to push for clearer compliance structures as stablecoin policy evolves. Enforcement actions will continue. Crypto firms operating in India must watch how the ED interprets FEMA rules in future cases.