WazirX, one of India’s largest crypto exchanges, announced on Monday that it has received relief from the Enforcement Directorate (ED). After cooperating with the anti-money laundering agency, the crypto exchange bank accounts were unblocked.
Is it safe to use WazirX now?
According to Release, WazirX provided all required details and documents to investigators. He mentioned that they had submitted all the documents of the accused companies that used their platforms.
The ED is investigating about 16 fintech companies and some instant loan applications, he added. However, some of these companies have been caught using WazirX to transfer businesses.
WazirX pointed out that they have no tolerance policy towards illegal activities. However, it also forces users to use it only for legal activities.
Coingape reported that the premises of the director of WazirX were searched by the ED before freezing their accounts. The anti-money laundering agency then froze bank assets worth around Rs 65 crore (about $8.13 million). ED claimed that funds were purchased and transferred through digital assets.
However, earlier, Pankaj Chaudhary, an Indian lawmaker, claimed that ED was researching two cases surrounding WazirX. The charges applied included violation of the Indian Foreign Exchange Management Act (FEMA).
No more worries about the exchange?
Meanwhile, WazirX claimed that it has no association with any allegedly accused company or apps. He mentioned that the exchange performs all required KYC/AML checks. However, there is no obligation to do so.
The exchange claims that it is like any other intermediary that has been misused by outside agents.
Binance head CZ and WazirX CEO Nischal Shetty have also been embroiled in an internet war of words. Shetty even went on to say that the deal between them involved Binance’s parent entity. However, he then asked CZ to reveal his parent company in front of the world.
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