WazirX announced on Monday that India’s financial crime combating agency has permitted it to restart banking operations after unfreezing its bank accounts.
WazirX, one of India’s major crypto exchanges by trading volume, said in a statement that the Enforcement Directorate (ED) cleared its funds as a result of its aggressive cooperation in the continuing money laundering probe.
The government blocked WazirX’s $8.1 million account after raiding the residences of exchange director Sameer Mahtre last month to investigate his alleged participation in assisting 16 fintech firms in laundering crime proceeds through crypto channels.
The investigation is part of a larger investigation into so-called Chinese “illegal loan apps” schemes, which has prompted the Indian government to crack down on such apps and their Chinese shell businesses.
Finance Minister Nirmala Sitharaman has directed the Reserve Bank of India, the country’s central bank, to create a “whitelist” of all authorized apps.
Earlier on August 12, ED froze a total of $46.4 million in Yellow Tune bank funds and cryptocurrency exchange Flipvolt holdings. The charges allegedly involve money laundering, and the claimed company serves as a front for Chinese entities.
Authorities have stated that the monies will be unavailable until the exchange can account for the proceeds of crime that have been transferred out of the nation.
These inquiries began to pile up after the Indian government announced the repeal of new crypto tax legislation that went into force earlier this year.
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