September 26, 2022

Indian Regulator Checks Several Crypto Exchanges for Money Laundering Suspects

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Indian Regulator Checks Several Crypto Exchanges for Money Laundering Suspects

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

According to the regulator, the accused firms launderedmore than Rs 1,000 crore (about $130 million) through instant lending services. Most of these firms are also reported to have ties to China. At least 10 crypto exchanges are under investigation.

The exchanges were sent subpoenas immediately after the searches atthe CEO of the WazirX site, which is suspected of laundering $350 million. The ED report says that the accused firms turned to the services of the exchanges and took 100 crores of rupees (about $13 million) from them. After that, they sent cryptocurrencies to international wallets, without fixing the transactions in any way in suspicious transaction reports (STR).

“Once these firms found out what was behind themwatch, they used a convoluted route to withdraw funds abroad. The opaque nature of the crypto ecosystem and the lack of regulation of the industry have provided these firms with the opportunity to freely place 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 case.

Recall that earlier the Reserve Bank of India (RBI) recommended that the government impose a ban on private cryptocurrencies.

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