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The anti-money laundering agency of India, Enforcement Directorate (ED), has recently summoned Binance executives for a possible role in an ongoing laundering investigation involving a betting app. As revealed recently, India is probing betting applications that are run by Chinese operators, and have collected over 10 billion rupees in the last 10 months through the WazirX crypto exchange.
ED Summoned Binance Executives for Betting App Laundering
Binance was established in the Cayman Islands without any corporate headquarters, and for a long time now, it has been facing regulatory crackdown as countries are intensifying scrutiny of the industry.
The scrutinization is done amid the concerns that cryptocurrencies are being used to hide the proceeds of money laundering, drug-related dealings, and terrorism.
As reported earlier, the operators of the applications used wallets linked with WazirX for purchasing, converting, and transferring the money to the wallets on the platform of Binance.
In addition to this, it should be noted that the Enforcement Directorate has already issued a show-cause notice to WazirX over alleged infringement of foreign exchange management rules involved in dealings. Here, we are talking about the transactions that involved cryptocurrencies and were worth 27.9 billion rupees.
No Response from Either Party
When asked to elaborate on the same, none of the representatives from the exchange chose to speak about the issue.
The spokesperson for the enforcement directorate did not even pick calls. Hence, both parties have refused to share any comment on the situation.
Also, according to The People, the Indian agency has come to know that Binance did not consider it much important to go through the KYC service before enrolling new customers.
Moreover, it should be noted that the top crypto exchange platform did not collect information explained by the global anti-money laundering watchdog FATF or Financial Action Task Force.