Enforcement Directorate (ED), the agency in charge of combating financial crime in India is now focusing its attention on more than ten cryptocurrency exchanges in the nation, which it suspects are involved in the unlawful transfer of more than 10 billion rupees ($125 million) outside of the country.
As per media sources, the cryptocurrency exchanges that have not yet been named were used by many firms as a kind of conduit.
These cryptocurrency exchanges are being accused of money laundering now because it is believed that they were used to make purchases that were then transferred to other foreign wallets, the majority of which were connected to mainland China.
The information was made public a few days after the Enforcement Directorate (ED) confiscated $8 million in assets held by one of the most prominent cryptocurrency exchanges in the nation (based on traffic), WazirX, for “aiding accused fast loan app enterprises.”
Reports indicate that the government filed charges against WazirX in 2021, accusing the company of breaking the Foreign Exchange Management Act (FEMA).
The investigation into possible instances of money laundering has received increased attention as a result of a recent search warrant executed on the properties of a WazirX executive. This search warrant sparked a dispute between the CEO of Binance, Changpeng Zhao, and the founder of WazirX, Nischal Shetty, regarding whether or not Binance controls the Indian exchange.
In the days to come, the ED may conduct interviews with personnel working for cryptocurrency exchanges that are now under investigation.
Even though the accounts of WazirX have been temporarily seized by the agency, the ED has indicated that it has requested other exchanges to participate in the probe since “similar transactions have happened on other exchanges.”