India Cracks Down on Cross-Border Crypto Payments through On-Ramp Firms

The Enforcement Directorate (ED) of India has launched a crackdown on five Bengaluru-based fiat on-ramp and off-ramp platforms, alleging that they have been conducting unauthorized cross-border money transfers. The raids were carried out under section 37 of the Foreign Exchange Management Act (FEMA), 1999.

The ED named Transak Technology India, Carretx Technologies, Mokshagna Technologies, Buyhatke Internet, and Abhibha Technologies as the platforms involved in the alleged illegal activities. The investigators reportedly froze approximately ₹6 crore sitting in the bank accounts they suspect were used to move the funds.

The ED explained that the crypto payment firms used a similar pattern across all platforms. A customer would deposit rupees into a company-controlled bank account, then use the money to buy virtual digital assets. The companies primarily bought USDT stablecoins, which were then sent through crypto platforms, sold over the counter, and then cash was paid out to the recipient on the other side of the border.

The ED accused Transak of converting locally earned profits into crypto and transferring them to a U.S. affiliate, bypassing normal banking channels. Carret is alleged to have run OTC trades with overseas remittance apps to pull money into India.