No products in the cart.
- Latest
- Trending
ADVERTISEMENT
The Indian Enforcement Department is investigating WazirX to determine whether it facilitated money laundering of INR 279 billion (over $350 million) through its platform, the country’s Finance Minister Pankaj Chaudhary. Said local media.
The exchange, which operates as an independent subsidiary of Binance, was subject to the Foreign Exchange Control Act of 1999 ( FEMA) regulations have been violated.
Regulators are investigating WazirX in two crypto-related cases. In one instance, WazirX is said to have used Binance’s walled infrastructure to make transactions that were “mysterious because they were not recorded on the blockchain.”
Chaudhary reiterated his call for global cooperation in regulating cryptocurrencies. He said:
Cryptocurrency policy frameworks will only become effective after significant international collaboration on risk-benefit assessments and the evolution of common taxonomies and standards.
Continuing the investigation, the ED issued a Show Cause Notice (SCN) to WazirX and had executives appear before it for further questioning.
WazirX, which was acquired by Binance in 2019, has often been flagged by Indian regulators for not complying with foreign exchange and money laundering guidelines.
In June 2021, WazirX was under investigation by the ED. Facilitate Illegal cross-border trade worth 27.9 billion rupees ($381.93 million). Investigations show that the Chinese was laundering money by routing criminal proceeds through WazirX after converting them into his USDT.
WazirX co-founders Nischal Shetty and Siddharth Menon argued that they complied with all applicable laws when defending the exchange.
business today We previously reported that the co-founders have relocated to Dubai as India’s crypto regulations tighten.
India’s first attempt to ban crypto April 2018 On the grounds of consumer protection, market integrity and the risks associated with money laundering. However, this decision was overturned by a Supreme Court ruling. March 2020.
But in July, the government went crazy for cryptocurrencies by imposing a 30% tax on income growth and introducing a 1% withholding tax rate (TDS). The exchange’s trading volume has dropped significantly, with WazirX reporting a 74% year-over-year decline as of June 30.
A follow-up survey by WaxirX and Zebpay revealed that 83% of cryptocurrency traders have reduced their trading frequency due to harsh tax measures.
Despite calls for tax cuts, Finance Minister Pankaj Chaudhary said the Reserve Bank of India (RBI) intends to use it as a means to discourage users from participating in “risky” transactions, so the tax policy remains in place. claimed to be.
