The Enforcement Directorate (ED) of India’s Finance Ministry is examining the operations of WazirX, the cryptocurrency exchange owned by Binance. According to The Economic Times, the agency regards the platform as involved in currency rule violations and money laundering totalling 2790 crore rupees (over $350 million).
“In one case, WazirX used the infrastructure of Binance, Cayman Islands-based. All crypto transactions between these exchanges were not registered”, — said Finance Minister Pankaj Chaudhary to the publication.
In another instance, the platform approved overseas user transactions for crypto exchanges, including involving third-party exchanges.
WazirX said management was unaware of any regulator complaints concerning compliance with the law.
According to Reuters, ED froze WazirX assets worth $8.16 million as part of the investigation.
Earlier, news of the investigation into the platform’s alleged violations of the Foreign Exchange Management Act first emerged in June 2021.
Later, reports clarified that authorities are studying the activities of apps operated by Chinese operators — part of money allegedly laundered through a bitcoin exchange.
In early 2022, the platform was accused of tax evasion totaling more than $6 million.
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