Binance-owned Indian exchange WazirX investigated for alleged AML failings
June 11, 2021. Summarized by summa-bot.
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India's Enforcement Directorate today issued crypto exchange WazirX a show cause notice for alleged AML failures enabling hundreds of millions of dollars in laundered criminal proceeds.
The well-known Indian crypto exchange WazirX, which Binance acquired in 2019, is under investigation for alleged violations of India's Foreign Exchange Act (FEMA).
ED has issued Show Cause Notice to WazirX Crypto-currency Exchange for contravention of FEMA, 1999 for transactions involving crypto-currencies worth Rs. 2790. 74 Crore. — ED (@dir_ed) June 11, 2021
According to a report from the Times of India, ED has named the four-year-old exchange and its directors, Nischal Shetty and Hanuman Mhatre, in its show cause notice.
"In the period under investigation, users of WazirX via its pool account have received incoming cryptocurrency worth Rs 880 crore ($120. 4 million) from Binance accounts and transferred out cryptocurrency worth Rs 1,400 crore ($191. 6 million) to Binance accounts.
In the two follow-up tweets, Shetty wrote that WazirX goes “beyond our legal obligations by following Know Your Customer (KYC) and Anti Money Laundering (AML) processes and have always provided information to law enforcement authorities whenever required. ” He added that the exchange is therefore able to trace all users of the platform using official identity data.