Mumbai44 minutes ago
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The Enforcement Directorate (ED) has issued show cause notices to cryptocurrency exchange WazirX and its directors Nischal Shetty and Sameer Mhatre under the FEMA Act. According to reports, this is a case of cryptocurrency transactions worth Rs 2,790.74 crore. The agency issued the notice on June 11.
The matter is being investigated under FEMA Act.
The government agency said in its statement that preliminary investigations conducted under the Foreign Exchange Management Act (FEMA) 1999 have revealed that such a huge transaction was done through an illegal Chinese online betting application, which is a case of money laundering. Let us tell you that WazirX is a crypto exchange of India. Where it provides a platform for trading different digital currencies.
There is no data available on the blockchain for transaction verification
According to the ED, users of WazirX received cryptocurrencies worth Rs 880 crore from Binance accounts from its pool account. Also transferred cryptocurrency worth Rs 1400 crore to Binance accounts. But none of these transactions are available on the blockchain for verification.
It has found that users of cryptocurrency exchanges can transfer cryptocurrencies to any person in any country without proper documentation, which is safe for those involved in money laundering and other illegal activities.
The Reserve Bank of India (RBI) in its clarification dated May 31 had asked banks to exercise caution. For this, some provisions of the law were also specially highlighted. For example, KYC, AML and CFT are required.