The Enforcement Directorate, the anti-money laundering agency of India, is investigating Binance in relation to its ongoing inquiry which involves betting apps, according to a report.
The executives of the world’s largest crypto exchange by volume have recently been summoned by the law enforcement agency for questioning. However, presently, Binance has not responded to the government’s letter.
As per the report, the ED has some questions in relation to its ongoing investigation against the betting app, which is being operated by China. It has been alleged that the Chinese operators, who have been managing the betting application, were able to raise over $134 million in just 10 months. Later, they laundered a part of that money through Binance-owned Indian crypto exchange WazirX.
On one hand, Binance is being investigated in India, while on the other hand, the crypto exchange has been facing many regulatory probes in different countries.
According to one of the sources, “The Chinese operators of the apps involved in ED’s laundering probe used wallets with WazirX for buying, converting and transferring money to wallets on Binance’s platform.”
A month ago, the ED also issued a show-cause notice to WazirX under the Foreign Exchange Management Act (FEMA), 1999 for transactions involving cryptocurrencies worth Rs 27.91 billion ($382 million).
The ED has also come to know that many of Binance’s clients did not complete the KYC and the exchange never even bothered to collect them.
Apart from this, Binance also did not collect information detailed by global anti-money laundering watchdog the Financial Task Force (FATF) for virtual currencies.