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Bank Operations at Wazirx will Continue as Usual After ED Unfreezes its Accounts

Bank Operations at Wazirx Will Continue as Usual After ED Unfreezes its Accounts

Indian cryptocurrency exchange WazirX announced that its bank accounts had been unfrozen by the ED. In a statement, WazirX said that they have provided all essential facts & documentation pertaining to suspected accused firms that used the WazirX platform in collaboration with authorities.

What’s All the Fuss About?

It is noteworthy that the ED searched WazirX’s director’s office on August 5, 2022, and frozen bank assets worth Rs 64.67 crore for aiding alleged fast lending apps to acquire and transfer virtual cryptocurrency assets for illegal activities.

A statement from WazirX also indicated that 16 fintech companies and instant lending applications were being investigated by the Enforcement Directorate (ED). 

According to the exchange statement, WazirX collaborated with the investigators by providing all the required facts, information, and documents related to the suspected accused firms using the WazirX platform. A public statement on Twitter from CZ, which once tried to acquire WazirX in 2019, distanced Binance from the exchange in light of the accusations. 

After a series of anti-money laundering (AML) inspections, the ED unfroze WazirX’s bank accounts in response to the company’s active cooperation. As a result, the ED stated that WazirX can now resume its banking activities as usual.

During a recent meeting on unlawful lending apps, presided over by Finance Minister Nirmala Sitharaman, the Reserve Bank of India (RBI) decided to create a “whitelist” of all such legal applications. 

As part of the regulations, the Ministry of Electronics and Information Technology was also mandated to keep an eye on hosting only whitelisted digital lending apps on app stores.

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