The Directorate of Enforcement (ED) has released a legal notice to cryptocurrency exchange WazirX, according to creator Nischal Shetty.
On June 11th, the ED summoned a notice on Zanmai Labs, the crypto exchange’s operator, and its directors, Nischal Shetty along with Sameer Hanuman Mhatre. WazirX, according to Shetty, has cooperated with the agency’s investigation and is presently developing a response to the notice claiming FEMA breaches.
Under the Foreign Exchange Management Act, they were in breach of foreign exchange restrictions (FEMA) and the letter demanded an explanation for transactions totaling Rs 2,790.74 crore, which the agency said occurred last month.
The crypto exchange on an accused drug dealer who, according to the bureau, utilized the platform to deal in contraband on June 18, the Mumbai branch of the Narcotics Control Bureau had requested information on that matter.
WazirX, which is owned by Binance, has a monthly volume of $6.2 billion and over 6.5 million users. WazirX, on the other hand, said on Thursday that it has collaborated with blockchain intelligence startup TRM Labs to improve its crypto fraud detection skills.
Services such as risk management and cryptocurrency compliance, as well as wallet screening, investigative tools, and transaction tracking, are provided in TRM Labs.
Shetty said “the partnership will help monitor, investigate, and mitigate crypto fraud and financial crime on the platform. TRM’s platform helps us achieve this balance with an AML (Anti Money Laundering) solution that’s easy for large compliance teams to use, but also underpinned by best-in-class blockchain analytics.”
In recent months, a number of additional cryptocurrency exchanges have partnered with businesses to prevent money laundering and terrorist funding on their platforms.