WazirX Says It Has A No-Tolerance Policy On Illegal Activities
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Since India's Directorate of Enforcement (ED) began looking into cases of alleged foreign exchange breaches, WazirX, one of the top cryptocurrency exchanges by volume, has come under regulatory attention.
The Indian crypto trading app stated that all off-chain transfers are also available with KYC information, and law enforcement can obtain comprehensive details about the accounts engaged in off-chain transfers. ED appears to be looking into some users' transactions, but Zanmai Labs has no connection to these users and is not aware of the motivation behind their activities. The company said in a statement,
"For every transaction, we can produce the relevant user's KYC (know-your-customer) details. We do not accept any cash transactions."
Binance Denied Purchasing WazirX
According to reports, WazirX, with 15 million members, was purchased by Binance in 2019. The founder and CEO of Binance, Changpeng Zhao, said the transaction was never finalized in a series of Tweets.
"Binance has never - at any point - owned any shares of Zanmai Labs, the entity operating WazirX," Zhao said, kicking off a wave of accusations and denials between the two exchanges.
WazirX previously has been questioned by the Indian ED when it sent the crypto app a "show cause" notice for alleged foreign currency irregularities totaling USD 382 million. The ED visited several Indian cryptocurrency exchanges last month, including CoinDCX and CoinSwitch, to look into potential violations of foreign exchange regulations.
