Enforcement Directorate (ED) has sent a reasoned notice to WazirX Cryptocurrency Exchange in connection with the scandal.

Top Indian Cryptocurrency Exchange WazirX 2,790. The Directorate has received a notice from the Director of Enforcement (ED) for violating FEMA (1999) for cryptocurrency transactions worth Rs 4 crore. The enforcement agency shared this in a tweet message on Friday. The law enforcement agency said in a press release that Chinese citizens used crypto exchanges to earn Rs 5.57 crore for gambling.

WazirX is an Indian cryptocurrency exchange in India that was launched in 2018. User Buy and sell Bitcoin And you can go to WazirX to buy and sell other cryptocurrencies for money. Although the cryptocurrency situation in India has been volatile for some time, there has been a lot of interest in these tokens as an investment option.

Cryptocurrencies have also been used for illegal payments in the past. Including payments made on the infamous Dark Web because it is difficult to track the movement of funds through cryptocurrency. Posted by Ed Tweets The agency said in a statement that “EDX has issued a 1999 causation notice to WazirX Cryptocurrency Exchange for FEMAR violations, ranging from Rs 2,990.744 crore for cryptocurrency-related transactions.”

In response to a question from Gadgets 360, WazirX said that it has not yet received notice of the reason. It denied any wrongdoing by the agency. “WazirX complies with all applicable laws. We, the users, will fully co-operate in the investigation if we receive official communication or notification from the ED,” said Nishal Sethi, CEO and founder of WazirX in an email statement. Whom he is Tweets Very done. “Funds at WazirX are secure, there is no need to worry about funding,” he said.
FEMA is the Foreign Exchange Management Act of 1999. This means “consolidating and amending foreign exchange laws to facilitate foreign trade and financing and to promote the orderly development and maintenance of India’s foreign exchange market.”

A press release issued by the ED said that a notice of reason has been sent to its director Messrs. Janmani Labs Pvt. Ltd. (VizierX). The ED has launched an investigation into money laundering through a Chinese-owned illegal online budgeting app, alleging that these Chinese nationals bought cryptocurrency teasers worth Rs 57 crore through WazirX. The statement added, “It has been found that UzairX users can transfer ‘valuable’ cryptocurrencies to anyone regardless of location and nationality without proper documentation as a haven for mp search users.”

Is Bitcoin and Cryptocurrency Legal in India?
Earlier this month, the Reserve Bank of India (RBI) asked Indian banks not to mention the 2018 notification on cryptocurrency. In 2018, the RBI has asked banks to transact in virtual currency. However, last year in 2020, the Supreme Court lifted the ban. So in June, the RBI issued a new order asking banks to stop using the 2018 circular.

At the time, however, the RBI had asked banks to continue to follow other safeguards. The RBI said banks and other financial institutions have not yet been able to properly study the KIC, anti-money laundering (AML), counter-terrorism financing (CFT) norms. Including obligations of agencies regulated under the Money Laundering Prevention Act (PMLA) to ensure compliance with relevant provisions under FEMA for foreign remittances.

“Cryptocurrency is a reality,” said Faisal Kawsa, chief analyst at TechArchie, in an earlier conversation with Gadgets360. We cannot deny it. It is very good to see that India is entering its early days. The concern, however, is the ambiguity about its legitimacy. I think we need to have a clear vision about it so that everyone can grow in confidence and benefit from it. “

With this latest development, the regulatory situation around cryptocurrencies seems a bit vague because cryptocurrencies can be traded internationally without any difficulty. And it could create complications for companies trying to maintain records within India.

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