WazirX says didn’t receive any ED notice yet, BFSI News, ET BFSI

India‘s largest cryptocurrency exchange, WazirX co-founder Nischal Shetty said that it is yet to receive any show cause notice from the Enforcement Directorate.

Enforcement Directorate in a release had said it has issued a show cause notice to the crytpocurrency exchange and its directors Nischal Shetty and Sameer Mhartre under Foreign Exchange Management Act (FEMA) transactions involving cryptocurrencies worth Rs 2790.74 crore.

ED had initiated an investigation under FEMA 1999, on the basis of the ongoing money-laundering probe into Chinese-owned illegal online betting applications.

During the course of the investigation ED observed that the accused Chinese nationals had laundered proceeds of crime worth Rs 57 crore approximately by converting the INR deposits into crypto-currency Tether (USDT) and then transferring the same to Binance (exchange registered in Cayman Islands) Wallets based on instructions received from abroad.

Nischal Shetty said, “WazirX is in compliance with all applicable laws. 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. 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.”