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India’s Largest Crypto Exchange Receives Show Cause Notice from Enforcement Directorate

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Fri, 06/11/2021 - 09:28
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Alex Dovbnya
The notice is related to an ongoing money-laundering investigating
India’s Largest Crypto Exchange Receives Show Cause Notice from Enforcement Directorate
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WazirX, the largest cryptocurrency exchange in India, has received a show cause notice from the Directorate of Enforcement.

The exchange is accused of violating the Foreign Exchange Management Act (FEMA) of 1999, which regulates external payments and foreign trades.

The notice is linked to the law enforcement agency’s ongoing investigation into how Chinese nationals were laundering proceeds obtained from illegal gambling apps.

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The bad actors used WazirX for converting Indian rupees into Tether, the number one stablecoin.

The USDT tokens were then transferred to Binance, the largest crypto exchange in the world according to reported trading volumes.

Last month, Bloomberg reported that Binance was under tax evasion and money laundering investigations which were jointly conducted by the Internal Revenue Service and the U.S. Department of Justice.       

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.