WazirX Reportedly Investigated by India’s Enforcement Directorate

India’s Enforcement Directorate (ED) has purportedly sent a show-cause notice to the founder of the popular exchange – Nischal Shetty, and the director – Sameer Mhatre. The agency has requested the duo to explain suspicious transactions worth nearly $400 million.

• According to a Reuters report, India’s financial crime-fighting organization, the ED, has contacted the two executives in regards to transactions worth 28 billion rupees ($382 million).
• The agency accused the operators of the exchange of failing to collect the required documents to carry out know-your-customer (KYC) verifications. Consequently, they are suspected of violating foreign exchange regulations.
• CryptoPotato reached out to WazirX, and a company representative told us they haven’t actually received any official documents yet.

• “WazirX is yet to receive any show-cause notice from the Enforcement Directorate as mentioned in today’s media reports. 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.”

• The world’s second-most populated country has a somewhat controversial history with the cryptocurrency space, starting a few years back when the nation’s central bank banned organizations working with it to operate with any companies even remotely associated with the industry.
• Although India’s Supreme Court reversed this directive in 2020, the RBI has frequently issued warnings against BTC and other crypto assets.
• Nevertheless, the latest news coming from the country was significantly more positive. India is now reportedly considering abandoning its plans to ban cryptocurrencies – instead, the government is looking into making them an asset class.