The investigation of the matter is going on right now, so the experts of the case have asked not to be named. But he added that the Enforcement Directorate has called Binance officials for questioning and their response is awaited. India is investigating a betting app run by Chinese operators that has collected over Rs 1,000 crore ($134 million) in the past 10 months. Binance acquired WazirX in 2019 for allegedly laundering part of the money through the WazirX cryptocurrency exchange.
Binance, incorporated in the Cayman Islands without any corporate headquarters, is facing regulatory action. Nations are intensifying industry investigations amid concerns that cryptocurrencies are being used to hide money laundering, drug dealing and terrorism proceeds.
Experts said the app’s operators used wallets with WazirX to buy, exchange and transfer money to wallets on Binance’s platform. The Enforcement Directorate has already issued a show-cause notice to WazirX for alleged violation of foreign exchange management rules in cryptocurrency-related transactions worth Rs 2,790 crore.
An Enforcement Directorate spokesperson did not respond to calls. A Binance representative did not immediately comment on the issue.
According to the information, the Indian agency found that Binance did not collect the required “know-your-customer” documents from customers in most of the transactions. The exchange did not collect detailed information for the virtual currency by the Financial Action Task Force (FATF), a global anti-money laundering watchdog.
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