‘No affiliations, unaware about objective of transactions’, WazirX on newest ED probe

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‘No affiliations, unaware about objective of transactions’, WazirX on newest ED probe

Days after the Enforcement Directorate (ED) probed WazirX, India’s largest cryptocurrency alternate, the corporate mentioned that it has no affiliation with any customers who take pleasure in illicit actions. This comes after the ED on Friday mentioned it has seized Rs 65 crore after it discovered proof in opposition to the corporate whereas investigating non-banking monetary firms (NBFCs) and their fintech companions indulging in predatory lending practices.

“ED seems to be investigating the transactions of sure customers and Zanmai Labs (the entity working WazirX) has no affiliation to such customers and is unaware concerning the objective of their transactions. Zanmai Labs is within the place of some other middleman whose platform could have been misused,” WazirX mentioned in a public assertion.

According to the ED, Chinese mortgage lending firms that had been shut down in India diverted their funds via crypto exchanges, and the utmost quantity of funds was diverted to the WazirX alternate.

The firm additionally made it clear that it’s owned by Zanmai Labs and Binance. Although, in a Twitter feud final week, Binance CEO Changpeng Zhao mentioned that it doesn’t personal WazirX, and “only provides wallet services for WazirX as a tech solution.”

According to WazirX, it has a no-tolerance coverage towards any unlawful actions. “Users agree within the User Agreement to make use of WazirX in accordance with relevant regulation. Users are signed up on WazirX solely after they full the KYC course of, together with submitting proof of handle and identification. Our KYC/AML phrases and processes can be found on the platform publicly,” the crypto exchange said, adding that it “doesn’t settle for any money transactions.”

On Monday, Binance disabled off chain transaction this created a panic amongst customers who needed to switch their funds from WazirX to Binance, with out paying any fuel price. WazirX believes that there appears to be a serious misunderstanding about off-chain transactions. “Off-chain transactions between WazirX and Binance can only be done by a user between his/her/its own account on the two platforms. Hence, KYC details are available for all off-chain transfers as well [and have been submitted to the ED when requested], Off-chain withdrawals also cannot happen if the accounts are not KYCed. Law Enforcement Agencies (LEAs) can get complete information about the accounts involved in off-chain transfers,” the corporate added.

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With inputs from TheIndianEXPRESS

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