Wazirx is using BINANCE’s walled infrastructure, said State Finance Minister Pankaj Chaudhary
New Delhi:
State Finance Minister Pankaj Chaudhary on Tuesday said the Law Enforcement Department was investigating allegations of money laundering of Rs 2,790 crore through cryptocurrency exchange WazirX.
The ED is investigating two crypto-related cases against WazirX under the provisions of the Foreign Exchange Management Act 1999 (FEMA), he said in a written response to Rajya Sabha.
“In one of the cases, the investigation carried out to date revealed that an Indian cryptocurrency exchange platform, Wazirx, operated by Zanmai Labs Private Limited in India used the facility. the walled infrastructure of the exchange BINANCE is based on the Cayman Island. Moreover, it was discovered that all Mr. said: “
Accordingly, he said, a Notice of Cause (SCN) has been issued under FEMA regulation against WaxirX for allowing offshore remittances of crypto assets worth Rs2,790 crore to wallets that do not determined.
Furthermore, in another case, it can be observed that Indian Exchanges specifically WazirX allowed a request from foreign users to convert one cryptocurrency into another. on its own platform as well as by using transfers from third party exchanges like FTX, BINANCE, etc.
In response to another question, Chaudhary said cryptocurrencies and Non-Fungible Tokens (NFTs) are by definition borderless and require international cooperation to prevent regulated arbitrage.
Therefore, any law that regulates or prohibits such borderless possession and trade can come into force only after substantial international cooperation on risk and benefit assessment as well as as the development of common classifications and standards, he said.
