The ED has said that Chinese Resources back the fintech companies. They also mentioned that the owner of WazirX, Zanmai Labs Pvt. Ltd has some agreements regarding the ownership of crypto exchanges that are doubtful.
August 5, the Enforcement Directorate froze some accounts of India’s biggest Crypto Exchanging platform, WazirX, which Zanmai Labs Pvt. Ltd owns.
The agency mentioned that it has been investigating money laundering since the last year. Also, there are other Indian NBFC companies related to this incident, which are fintech partners. They have violated the RBI guidelines. This is because many charges were there, like misuse of personal data, abusive language, and extorting the loan interest.
The ED stated, “Various Fintech companies backed by Chinese funds could get an NBFC license from RBI for carrying out lending business. So they devised the MoU route with defunct NBFCs to Piggyback on their license.”
According to the managing director of WazirX, the company controls crypto-crypto and crypto-INR transactions and has an agreement with Binance. After the investigation, the report says Zanmai is involved. However, the ED added that their answers were contradictory to their statements.
The ED also said that “By encouraging obscurity and having lax Anti-Money Laundering (AML) norms, it has actively assisted around 16 accused fintech companies in laundering the proceeds of crime using the crypto route. Therefore, equivalent movable assets to the extent of Rs 64.67 crore lying with WazirX were frozen under PMLA, 2002.”
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