Indian authorities investigate possible violation of WazirX 

Recently, Indian authorities’ crosshairs have been locked at crypto exchange platform WazirX because of the company’s possible violation of India’s foreign exchange law. 

The country’s Directorate of Enforcement (ED) has already sent a notice to WazirX for alleged violation of India’s Foreign Exchange Management Act.

WazirX, which is owned by Binance, has caught the government’s attention because of the company’s capability to conduct cross-border payments without oversight from Indian regulators.

Probe intensifies

One of the officials of the Directorate of Enforcement said: “WazirX’s platform allowed clients to transfer cryptocurrencies without proper documentation, making it a route for laundering.” 

Since Wazir offers decentralized payment transfer services, the Indian government requires users to provide KYC information such as PAN and Aadhaar cards, which is equivalent to the Social Security System of the U.S.

But even with these requirements, the authorities would not have the capability to know the identity of the receiver’s wallet, giving the whole process the right amount of security and privacy.

Not enough

The Directorate of Enforcement said that simply claiming that digital currencies are not misused is not enough. 

The law enforcement agency said that strong regulations must be in place to ensure that bitcoin and other cryptocurrencies are not used for illegal activities like money laundering, drug and dark web purchases. 

WazirX responded by saying that it is doing its responsibility to track all users in the platform, including official identity information.

The crypto exchange also added that it is currently cooperating with ED with regard to the company’s alleged forex law violation.

It has also assured the public and the government that it has always been committed to following the country’s laws and ensuring the welfare of users who are using its platform.


Image courtesy of Cointelegraph News/YouTube 

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