WazirX under the scanner of Indian Government for Money Laundering
Twitter is all buzz about the notice issued by India's AML investigation agency. WazirX is one of the leading crypto currency exchanges in India. Its Directors are Nischal Shetty and Sameer Mhatre.
This is a shocking development amid all the positives that were coming from India. Indian government has always been against the crypto currencies. Some of their officials also termed the currency as the ponzi scheme. Nischal Shetty is quite vocal on Twitter and have always opposed the government stand on crypto currencies.ED has issued Show Cause Notice to WazirX Crypto-currency Exchange for contravention of FEMA, 1999 for transactions involving crypto-currencies worth Rs. 2790.74 Crore.
— ED (@dir_ed) June 11, 2021
I got to read a very interesting article on the subject of India's stand on Crypto currencies - How did it kept changing ?
This will have direct impact on the pricing of the bitcoin as it will create the FUD in the Indian investors.
What is the case ?
The investigation agency has alleged that there are specific transactions related to Chinese betting app. The pool accounts of WazirX received close to INR. 880 crores from the crypto currency accounts held at Binance and then the agency has claimed that the money was laundered. WazirX allows the conversion of Indian currencies to the crypto currency. A few days back there was an investigation into Chinese betting apps which illegally collected billions of Rupees from Indian Investors. These funds were layered through the crypto currency exchanges.
How is Exchange involved ?
It is alleged that the Currency Exchange under the leadership of Mhatre and Shetty did not collect sufficient KYC documents of the persons involved in the Chinese betting launderers who passed on the money illegally raised from India to China by converting into crypto currencies.
I am sure there could be many more angles to this case and my friends in India @chireerocks @arunava @harpreetjanda @xyzashu @alokkumar121 @sugandhaseth @gurseerat @bala41288 @sayee @guurry123 @hungryharish @chetanpadliya @luckyali @bhattg @sidwrites @atma.love @finguru @coffeelovers and @amr008 can tell more about this.
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