June 11, 2021 | AtoZ Markets – India’s Enforcement Directorate (ED) has suspected India's largest cryptocurrency exchange, WazirX, of aiding money laundering, according to the announcement on the regulator's Twitter page. Intelligence reportedly initiated an investigation against WazirX following a $390 million transaction.
The investigation against WazirX is part of a larger operation against money laundering through "illegal" betting apps owned by Chinese citizens, Moneycontrol writes. However, what kind of betting service we are talking about is not specified.
WazirX and Binance suspected of money laundering
It is reported that during the investigation, the suspects laundered about $7.9 million. Indian rupees were first converted to tether (USDT) and later withdrawn to Binance.
In total, during the investigation, WazirX received $123 million worth of cryptocurrency from Binance accounts. Then, the $196 million cryptocurrency was sent back to Binance. Moreover, according to intelligence, "none of these transactions are available on the blockchain for auditing."
"WazirX does not collect the necessary documents, which is a gross violation of the requirements for combating money laundering and combating the financing of terrorism," writes Moneyycontrol, citing a statement from the regulator.
It turned out that WazirX clients can send cryptocurrency to any person, regardless of his location and any kind of verification. This policy makes the exchange a haven for people seeking money laundering, the ED added.
The investigation against WazirX comes amid news that Bitfinex, KuCoin, and Kraken are about to enter the local market. At the same time, earlier the Canadian regulator accused KuCoin of violating the securities law. Representatives of the exchange did not comply with the requirements of the regulator, even despite the deadline provided.
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