Indian cryptocurrency exchange launched a review for WazirX. The exchange allegedly violated foreign exchange regulations.
Will India penalize cryptocurrency exchange WazirX?
WazirX, one of the country’s largest cryptocurrency exchanges, and its executives are suspected of violating foreign exchange regulations, India’s financial crime-fighting agency said in a statement.
The investigation came at a time when the Indian government was considering whether to pass a law that could ban cryptocurrencies. The Federal Enforcement Directorate (ED) stated that the investigation covered transactions worth $381.93 million.
The investigation into WazirX, which has been owned by Binance, the world’s largest digital currency exchange since 2019, began as ED investigated a money laundering case involving illegal online betting practices owned by China.
ED stated that during the investigation, it was determined that approximately 570 million rupees worth of laundered proceeds were converted into cryptocurrencies using the Binance platform. “By following KYC and AML processes, we go beyond our legal obligations and always provide information to law enforcement when needed,” said Nischal Shetty, WazirX CEO and Founder.