ED sends a notification to WazirX.
The Office of Law Enforcement (ED) announced Friday that it has issued a demo notice to cryptocurrency exchange WazirX for violating currency governance rules. “ED sent WazirX Crypto-currency Exchange formal notice of FEMA violation of 1999 regarding cryptocurrency transactions of Rs 2,790.74 crore,” the Law Enforcement Department said in a Twitter post. WazirX is a cryptocurrency exchange that allows users to trade cryptocurrencies such as Bitcoin, Ethereum and others.
WazirX directors Nishal Shetty and Hanuman Mhatre, as well as the company, were named in a notice issued by the central investigating agency following the completion of an investigation, PTI news agency reported. The agency released a statement saying it discovered the company’s transactions during an ongoing money laundering investigation into illegal online betting apps “owned by the Chinese.”
In his opinion, ED said that the accused Chinese citizens were laundering criminal proceeds worth about Rs 57 crore by converting Indian rupee deposits into cryptocurrency investments (USDT) and then transferring them to Binance (a registered exchange of the Cayman Islands). “During the study period, WazirX users received Rs 880 crore inbound cryptocurrencies through their pool account from Binance accounts and transferred Rs 1,400 crore cryptocurrencies to Binance accounts,” the notice said.
The survey agency said WazirX does not collect the required documents from its clients, in flagrant violation of anti-money laundering (AML) and terrorist financing (CFT) standards and FEMA guidelines. ED claims that none of these transactions are available on the blockchain for audit or investigation.
India has said it is open to evaluating and exploring new technologies such as cryptocurrencies to improve governance. Reports suggest that a bill in this regard could be presented at the next parliamentary session with recommendations made by the high-level internal ministerial committee on digital currencies.
Get current BSE, NSE, US market quotes and latest net asset values, portfolio of mutual funds, see the latest IPO news, best IPOs, calculate your tax using the income tax calculator, find out the best winners, best losers and the best stock funds on the market Like us on Facebook and follow us on Twitter.
Financial Express is now on Telegram. Click here to join our channel and stay up to date with the latest news and updates from Biz.