The Enforcement Directorate on Friday issued a show-cause notice against cryptocurrency exchange WazirX on charges of FEMA violations. This information has been given in the tweet of ED. It said that the ED has issued a show cause notice against WazirX in the case of transaction of 2790.74 crores. The notice has been issued under FEMA 1999. WazirX is a cryptocurrency exchange that allows users to trade in Bitcoin, Ethereum and some other cryptocurrencies.
Notice against directors of WazirX
The ED notices are in the name of WazirX directors Nischal Shetty and Hanuman Mhatre. According to the news of PTI, a notice has been issued against these people after completing the investigation by the ED. According to the statement issued by the ED, during the investigation of the online betting app run by Chinese companies, it came to know about the transactions of WazirX. This investigation was related to money laundering case.
The ED has said in the notice that Chinese nationals converted Indian Rupees into Cryptocurrency Tether (USDT) and transferred it to Binance (registered exchange in Cayman Islands). 57 crores of this transaction was converted into cryptocurrency. The notice states that the users of WazirX received cryptocurrency worth Rs 880 crore from Binance account through pool account and then deposited Rs 1400 crore in cryptocurrency into its account.
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WazirX accused of violating FEMA
The investigating agency has said that WazirX does not take necessary documents from its customers. This is a complete violation of the law. This is also a complete violation of the Money Laundering Act. FEMA guidelines and anti-financing of terrorism (FTA) directives have also been ignored. The ED has said that none of these transactions are available on the blockchain so that it can be investigated or audited.
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