WazirX says it has no-tolerance for illegal activities

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Zan­mai Labs Pri­vate Lim­it­ed, the firm oper­at­ing Indi­an cryp­tocur­ren­cy exchange WazirX, said Tues­day it has a no-tol­er­ance pol­i­cy towards any “ille­gal activ­i­ties”. Users agree to use the exchange in accor­dance with applic­a­ble laws, the com­pa­ny said in a state­ment.

See relat­ed arti­cle: Tax author­i­ties recov­er US$9M from India’s biggest cryp­to exchanges

Fast facts

  • WazirX, one of India’s largest cryp­tocur­ren­cy exchanges by vol­ume, has been under reg­u­la­to­ry scruti­ny since India’s Direc­torate of Enforce­ment (ED) start­ed inves­ti­gat­ing cas­es of alleged for­eign exchange violations.
  • “ED appears to be inves­ti­gat­ing the trans­ac­tions of cer­tain users and Zan­mai Labs has no affil­i­a­tion to such users and is unaware about the pur­pose of their trans­ac­tions,” the com­pa­ny said in its state­ment.  “For every trans­ac­tion, we are able to pro­duce the KYC (know-your-cus­tomer) details of the rel­e­vant user. We do not accept any cash transactions.”
  • WazirX said KYC details are avail­able for all off-chain trans­fers as well and the law enforce­ment agen­cies can get com­plete infor­ma­tion about the accounts involved in off-chain transfers.
  • WazirX, which report­ed­ly has about 15 mil­lion users, was said to have been acquired by Binance in 2019. How­ev­er, Binance founder and CEO Chang­peng Zhao, in a series of Tweets, said the trans­ac­tion was nev­er completed.
  • “Binance has nev­er — at any point — owned any shares of Zan­mai Labs, the enti­ty oper­at­ing WazirX,” Zhao said, kick­ing off a wave of accu­sa­tions and denials between the two exchanges.
  • This is not the first time that India’s ED is ques­tion­ing WazirX. It had issued a so-called show cause notice to WazirX in June 2021 for alleged for­eign exchange vio­la­tions involv­ing about US$382 million.
  • The ED last month report­ed­ly con­tact­ed Indi­an cryp­to exchanges, includ­ing CoinD­CX and Coin­Switch, to probe pos­si­ble vio­la­tions of for­eign exchange rules.

See relat­ed arti­cle:  Only the big fish will sur­vive as India cracks the whip on cryp­to: Binance-backed WazirX



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