WazirX, on Friday, received a notice from the Enforcement Directorate of India suspecting connection with an ongoing money-laundering investigation into Chinese-owned illegal online betting applications.
WazirX assured that every user’s funds are safe following a report by the ED regarding the violation of the Foreign Exchange Management Act involving cryptocurrency worth Rs 2,790.74 crore.
“WazirX does not collect the requisite documents in clear violation of the basic mandatory Anti Money Laundering (AML) and Combating of Financing of Terrorism (CFT) precaution norms and FEMA guidelines,” the ED said in the statement.
“WazirX is yet to receive any show-cause notice from the Enforcement Directorate as mentioned in today’s media reports. WazirX is in compliance with all applicable laws.”, Nischal Shetty stated in a tweet posted by him following the mentioned event.
He further said, “We go beyond our legal obligations by following Know Your Customer (KYC) and Anti Money Laundering (AML) processes and have always provided information to law enforcement authorities whenever required.” and “We are able to trace all users on our platform with official identity information. Should we receive a formal communication or notice from the ED, we’ll fully cooperate in the investigation.”
Meanwhile, the official Twitter handle of WazirX also posted a series of tweets explaining the situation to its clients.
“Should we receive a formal communication or notice from the ED, we’ll fully cooperate in the investigation. Please note: Your funds are absolutely safe on WazirX.”, said in a tweet released by WazirX
WazirX is an online Bitcoin and cryptocurrency trading platform backed by the crypto giant Binance and the ongoing allegations could affect the cryptocurrency market in India as the majority of investors still refer to cryptocurrency with suspicion due to its high volatility and the decentralized foundation which makes it a currency unregulated by any financial body.