Zanmai Labs, operator of Indian crypto exchange WazirX said it has a no-tolerance policy towards any illegal activities.
The statement comes just days after the Directorate of Enforcement (ED) alleged that the company was in violation of know your customer (KYC) guidelines.
"Users are signed up on WazirX only after they complete the KYC process, including submitting proof of address and identity. Our KYC/AML terms and processes are available on the platform publicly. For every transaction, we are able to produce the KYC details of the relevant user," a spokesperson said in a statement.
On Friday, ED said it recently conducted searches on one of the directors of Zanmai Lab Pvt Ltd, which owns the popular cryptocurrency exchange WazirX, and had issued a freezing order on its bank accounts that contain Rs 64.67 crore.
"We do not accept any cash transactions. We have fully cooperated with the ED for several days and have responded to all their queries fully and transparently. ED appears to be investigating the transactions of certain users, and Zanmai Labs has no affiliation to such users and is unaware of the purpose of their transactions. Zanmai Labs is in the position of any other intermediary whose platform may have been misused," it said.
According to the federal agency, WazirX had 'actively' assisted 16 fintech companies – under investigation on charges of money laundering – to divert their alleged proceeds of crime using the crypto route. The probe found that the exchange had a complicated ownership structure.
The exchange allegedly violated KYC norms and failed to conduct any enhanced due diligence (EDD) nor raised any suspicious transaction reports (STRs), according to the ED.
An STR is raised to the Financial Intelligence Unit (FIU) when a reporting entity suspects or has reasonable grounds to suspect that funds are proceeds of a criminal activity or are related to terrorist financing.
ED also raised concerns about off-chain transactions between Binance and WazirX.
The WazirX spokesperson said that off-chain transactions between WazirX and Binance "can only be done by a user between his/her/its own account on the two platforms."
"KYC details are available for all off-chain transfers as well (and have been submitted to the ED when requested). Off-chain withdrawals also cannot happen if the accounts are not KYCed. Law Enforcement Agencies (LEAs) can get complete information about the accounts involved in off-chain transfers," the company said.
On Tuesday, WazirX warned users opting to withdraw their funds to international exchanges that they may "unknowingly be non-compliant" while doing so.
ET reported on August 8 that the recent tussle between WazirX founder and chief executive Nischal Shetty and Binance founder Changpeng Zhao had caused confusion among users, leading some to withdraw funds from the exchange.
- After Abortion Reform Bill passes third reading in House of Keys, campaigners say: 'Don't cause unnecessary delay'
- Landmark EU privacy law GDPR enters into force, leaving many companies in state of confusion
- New anti-grooming law used to protect children in Suffolk and Essex
- Drowning rates skyrocket despite law change
- Russia may violate doping laws at World Cup – U.S. anti-doping agency
- Politicians call for NI abortion reform
- U.S. Expats Face Hammering From New Tax Rules
- MHKs approve abortion reform
- European Banks Are Caught in a Data Dilemma
- How Free Soup Can Build a Constituency in Venezuela
- Brits BLOCKED from websites and video games thanks to GDPR – here’s where you’re now banned from using
- Predatory lenders return to target New Zealand's vulnerable
- Malta emerges as world’s cryptocurrency hub despite EU’s TAX3 investigation
- What is GDPR and how does it affect me and my business?
- Northern Ireland Secretary of State Karen Bradley leaked briefing notes [full text]
- GDPR....are you ready?
- POLITICO Sunday Crunch: Knife crime — New center? — Hacker MP
- Sunday Shows Round-Up: Knife Crime, Anti-Semitism And Brexit
- Is Denmark banning the burka and which other countries want to stop women wearing the full-face veil?
- Theresa May’s Brexit plan won’t work
wazirx kyc law: WazirX says it is compliant with KYC law have 692 words, post on www.gadgetsnow.com at August 10, 2022. This is cached page on TechNews. If you want remove this page, please contact us.