New Delhi. The relationship between cryptocurrencies and controversies is getting deeper all over the world. Now the recent case is of India. The Enforcement Directorate (ED) has issued a show cause notice to the country’s largest cryptocurrency exchange. The notice has been issued to the exchange for alleged violation of Foreign Exchange Management Act (FEMA) in transactions worth Rs 2,790 crore.
Directors of the exchange Nischal Sethi and Hanuman Mahatre have also been named in the notice issued by the central probe agency after investigation.
Notice in case of transaction of Rs.2790 crores
The ED said it came to know about this transaction of the company during its money laundering probe related to a “Chinese-owned” illegal online betting app. The ED said that this show cause notice is in respect of transactions worth Rs 2,790.74 crore.Also read- Online cyber fraud increased by 28 percent in Corona period, loss of 25 thousand crores to the country
Chinese citizens also involved in illegal transactions
The Enforcement Directorate said that the investigation revealed the fact that Chinese nationals laundered crime proceeds to the tune of Rs 57 crore by converting Indian rupee deposits into cryptocurrency Tether (USDT). It was later transferred to the Binance (registered exchange in the Cayman Islands) wallet.
Binance acquired WazirX in 2019. The ED alleges that WazirX allowed wide-ranging transactions through cryptocurrencies.
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WazirX allowed these without gathering the required documents in violation of the Anti-Money Laundering Act and the Countering the Financing of Terrorism (CFT) as well as FEMA guidelines.
big money laundering case
The ED said, “It has been found that customers of WazirX can transfer valuable cryptocurrencies without proper documentation to any person irrespective of their location and nationality, thereby making it vulnerable to users looking for money laundering or other illegitimate activities. becomes a safe haven.”
This exchange WazirX was established in December 2017 by the company Janmai Labs Pvt Ltd. took place under. It was founded as a domestic cryptocurrency startup.