The Enforcement Directorate (ED) on Friday said that it has issued a show cause notice to Crypto-Currency Exchange Zanmai Labs Pvt Ltd (WazirX) and its Directors Nischal Shetty and Sameer Hanuman.
The Enforcement Directorate has just recently, on Friday, June 11, issued a Show Cause Notice to the Indian crypto currency exchange- WazirX for a supposed violation of FEMA (Foreign Exchange Management Act), 1999. The accused violation involved crypto transactions of worth ₹2,790.74 crore. The FEMA investigation instigated by the ED is based on the money laundering investigation of the illegal online Chinese betting app, which is currently in process, read the statement given out by the ED. In a statement released by the ED, it said- \'\'During the course of the investigation, it was seen that the accused Chinese nationals
This investigation has been initiated by Foreign Exchange Management Act (FEMA) on the basis of the ongoing money laundering probe into Chinese-owned illegal online betting applications.
According to a note by the Enforcement Directorate, WazirX was being used by foreigners to launder gambling proceeds. The ED says that Chinese nationals used the crypto exchange to launder Rs. 57 crore, and noted that users can transfer money without proper documentation.
According to the Enforcement Directorate (ED), a FEMA investigation was initiated on the basis of the ongoing money-laundering investigation into Chinese owned illegal online betting applications.