March 29, 2024

Indian Regulator Checks Several Crypto Exchanges for Money Laundering Suspects

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Indian Regulator Checks Several Crypto Exchanges for Money Laundering Suspects

Enforcement Directorate of India(ED) is investigating the activities of more than ten cryptocurrency exchanges for helping foreign firms launder money using digital currencies.

According to the regulator, the accused firms launderedover Rs 1,000 crore (about $130 million) through instant lending services. It is also reported that most of these firms have links to China. At least 10 crypto exchanges are under investigation.

The exchanges were sent subpoenas immediately after the searches atCEO of the WazirX platform, which is suspected of laundering $350 million. The ED report states that the accused firms used the services of exchanges and took from them 100 crore rupees (about $13 million). After that, they sent cryptocurrencies to international wallets without recording the transactions in suspicious transaction reports (STRs).

“As soon as these companies found out what was behind themThey are observed to have used a convoluted route to transfer funds abroad. The opaque nature of the crypto ecosystem and the lack of industry regulation have given these firms the opportunity to unhindered their placement of their assets offshore. This makes it much more difficult to investigate the proceeds of crime and trace the ultimate beneficiary,” said sources familiar with the matter.

Let us recall that earlier the Reserve Bank of India (RBI) recommended that the government introduce a ban on private cryptocurrencies.