Enforcement Directorate of India today tweeted a tweet which read “Enforcement Directorate has issued a show cause notice to Crypto Currency Exchange WazirX for violating FEMA Act u/s 1999, regarding crypto currency transactions of 2790 crores.”
In some media reports, it has been reported that a large amount of USDT was sent on the WazirX exchange by some Chinese application and then it was sent to the Binance exchange. How the copy of this notice got here is a matter of investigation.
In this regard, WazirX CEO Nischal Shetty has given his stand by a tweet – A show cause notice has just been issued to WazirX by the Enforcement Directorate of India, as reported in some media reports today.
WazirX is in compliance with all applicable laws.
We go beyond our legal obligations by following Know Your Customer (KYC) and Anti Money Laundering (AML) procedures and always provide information to law enforcement authorities as and when required.
We are able to identify our users on our platform for official information. If we get a formal communication or notice from ED, we will fully cooperate in the investigation.
This shows that WazirX has not yet received the ED notice, the ED has just issued the notice and when the exchange gets this notice, he will also present his side and cooperate with the ED here. But the biggest thing is that the ED has given the notice and WazirX has not received this notice yet, then how did the media get this notice and what is written in it? If the ED itself gave its copy to the media, then it is also a matter of investigation.
Such notices have been received by many exchanges in the past and this is a show cause notice, which means that the information received by the ED, the exchange should present its side in this and inform the ED. This notice is a common procedure that gives an opportunity to any party to make its point before taking legal action.
In the meantime, what should exchange users and WRX investors be afraid of? The answer is no, this is a common notice which will be answered by the exchange in time. Investors money is safe on the exchange and they do not need to panic. Investors of WRX tokens are also safe because there is no token holder or any person on the exchange. No problem of any kind.
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