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Indian Crypto Exchange WazirX at the Center of an Alleged $38M Money Laundering Investigation

Published June 11, 2021 | Updated June 11, 2021

In Brief
  • The Financial watchdog of India, ED allegedly issued a notice to the Indian crypto exchange WazirX in an ongoing money-laundering investigation.
  • WazirX CEO claimed they are yet to receive any formal notice from ED and refuted allegations over non-compliance.

Indian Crypto Exchange WazirX at the Center of an Alleged $38M Money Laundering Investigation

  • The Financial watchdog of India, ED allegedly issued a notice to the Indian crypto exchange WazirX in an ongoing money-laundering investigation.
  • WazirX CEO claimed they are yet to receive any formal notice from ED and refuted allegations over non-compliance.

WazirX, the top crypto India exchange is at the center of a $38 million money-laundering investigation with a Binance connection. The Enforcement Directorate, a financial watchdog in India today allegedly issued a show-cause notice to the Indian crypto exchange WazirX regarding an ongoing money-laundering investigation into an illegal Chinese betting app.

ED in its official statement claimed the users of the Chinese betting app converted a significant portion of money from Indian currency to crypto stablecoin Tether and later transferred it to Binance. The total amount under the scanner is about $38 million. The financial watchdog claimed they couldn’t find any records of the alleged laundered money on WazirX while accusing them of not implementing AML and KYC guidelines.

WazirX Responds to Allegations

Nischal Shetty, the CEO of WazirX responded to media reports about the alleged ED notice, claiming they are yet to receive any formal communication from the financial watchdog. He went onto add that WazirX complies with all applicable laws including AML guidelines and strict KYC verification.

The financial watchdog notice to the Indian crypto exchange comes at a crucial time when the Indian government is planning to introduce a cryptocurrency bill during the upcoming monsoon session of the parliament.

Indian regulators have maintained a regressive stance towards crypto, claiming it to be a tool for illicit activities and if this case holds any ground, it can be used against positive regulatory changes. Only yesterday some inside sources indicated that the government might have a change in stance and reports suggested that Indians may classify Bitcoin as an asset class.

WazirX is one of the most popular Indian crypto exchanges with the highest trading volume in the country. The exchange was bought by Binance in November 2019.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

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Prashant Jha 659 Articles
An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.
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