Laundering of Rs 1,000 crore: ED probe on crypto exchanges points to China link

At least 10 crypto currency exchanges are under Enforcement Directorate (ED) scanner for allegedly laundering Rs 1,000 crore for firms – mostly having China link – being investigated in the instant loan app case, according to an Economic Times report.

The central agency’s investigation revealed that the accused first approached the exchanges to buy crypto currency which were later sent to international wallets, reported the newspaper. The accused exchanges failed to raise suspicious transaction reports (STRs) to the authorities. In many instances, the KYC details were also found to be dubious, it added.

The ED is also closely monitoring the recent social media row between WazirX and Binance , the world’s largest crypto exchange by trading volume, over the ownership and non-compliance by the Indian exchange, according to a report published in the NDTV. The ED has approached both companies, questioning who is responsible for maintaining the details of the 15 million accounts on the exchange.

Binance announced the acquisition of WazirX in 2019. Following the recent action by the probe agencies against the Indian crypto platform, Changpeng Zhao, chief of Binance, denied ownership stating that the transaction was never completed, said the NDTV report.

The Enforcement Directorate last week had frozen bank deposits of Rs 64.67 crore as part of a money laundering probe against the cryptocurrency exchange WazirX.

Indian authorities have on various occasions called for strengthening anti-money laundering and terrorism finance regulations.

Notably, the government had said that it had no data on crypto startups existing in the country. Minister of State for Commerce and Industry Som Parkash said that the RBI has registered its concerns over the adverse effects of cryptocurrencies on the country’s economy, as per several reports. The minister is said to have also quoted a slew of RBI circulars and orders that cautioned users and traders on risks related to cryptocurrencies. – INDIA NEWS STREAM