India investigates ten crypto exchanges over money laundering claims

The Enforcement Directorate in India has launched an investigation into ten cryptocurrency exchanges. The directorate said these transactions helped to disguise crypto assets worth more than one billion rupees to more than $125 million.

India investigates money transfer on ten crypto exchanges.

According to a report by the Economic Times, the exchanges were used by companies linked to money laundering charges to make crypto purchases worth more than 100 million rupees. The money was later sent to external wallets, most of which are located in mainland China.

The sources added that the money exchanges collected the KYC information in a dubious manner as the data monitored accounts of people living in remote areas who were not involved in the transaction.

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However, the exchanges continued to allegedly comply with KYC requirements. Moreover, these exchanges fail to provide suspicious transaction reports that could provide information about money laundering activities.

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The failure of these exchanges made it difficult for the accounting search process to comply with the regulators’ requirements. Some sources close to the investigation added that the account holders withdrew money from the account after coming to know about the matter. The investigators added that the crypto sector’s lack of transparency and regulation made it easy for companies to hide their assets in offshore accounts.

Binance is in a fight with India’s WazirX.

Binance and WazirX have clashed following a number of posts by the CEOs of the two exchanges on Twitter. The debate revolves around Binance acquiring WazirX.

The dispute between the two companies followed the freezing of Wazirx’s bank accounts by Indian authorities. More than $8 million worth of funds were suspended after WazirX was linked to more than 15 fintech companies withdrawing funds.

Binance also responded that WazirX must take full responsibility for its actions and user funds. Binance also emphasized that it has nothing to do with WazirX’s operations.

While these exchanges are being investigated, industry experts believe the traditional financial system is to blame. Funds sent to and from these platforms are sent through traditional banks due to lack of proper due diligence to track the funds, which is why these banks are unaware of the transaction.

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