The ED issued a show-cause notice to WazirX crypto exchange for its alleged violation of the foreign exchange management act. However, the ED gave the notice in connection with the transactions involving cryptocurrencies worth Rs.2,790.74 crore.
Nischal Shetty is the CEO of WazirX. He assured the clients of their funds. He said that funds are safe and there is no need to worry. Shetty said that they go beyond their legal duties. Moreover, they follow KYC and AML processes. The company gives information to law enforcement authorities when needed.
Zanmai Labs Private Limited
WazirX is a registered under the name Zanmai Labs Private Limited. They registered the company in December 2017. Moreover, it is a domestic cryptocurrency firm. Moreover, the company acts as a platform for trading in digital currencies. Some currencies they trade are Bitcoin, Tron, Ethereum, Litecoin, and Ripple.
WazirX is the country’s largest cryptocurrency exchange. It has around 5 million users in India. The firm said that it did not receive any notice from the ED. Moreover, the firm’s activities comply with all the applicable laws.
The Enforcement Director started the FEMA investigation. There is an ongoing money-laundering investigation. They are checking Chinese-owned online betting platforms. They also found out that the accused Chinese nationals have laundered proceeds worth Rs 57 crore in the inquiry. However, they transferred the funds to Binance.