India-based cryptocurrency exchange, WazirX has announced the unblocking of its account by the Enforcement Directorate of India (ED). The cryptocurrency exchange made the revelation via a blog post today. As revealed, WazirX can now proceed with its banking activities like before.
According to the announcement, WazirX explained how the Enforcement Directorate is currently investigating sixteen (16) fintech companies and instant loan apps. The ED accused WazirX of allowing these firms to launder money through its platform. Therefore, blocking the cryptocurrency exchange’s bank account on August 6.
Meanwhile, WazirX described how it has been compiling with the demands of the investigators. The cryptocurrency exchange said it provided the prosecutors will relevant details, documents, and information about the firms under investigation. WazirX established that it’s mandatory for its users to use the platform according to stipulations by regulators.
Also, the cryptocurrency exchange disassociated itself from the firms under watch. WazirX divulged that it has no association with the Fintech firms and Instant Loan Apps under investigation. The crypto exchange emphasizes that its platform will not tolerate any form of illicit activity. Thus making it compulsory for users to only use it for legit businesses.
In that regard, the cryptocurrency exchange added that it’s carrying out “Know your custormer” and “Anti-money laundering” checks. Though, the firm swiftly established that the ongoing investigation didn’t mandate the move. WazirX illustrated that the platform is innocent and is “like any other intermediary whose platform may have been misused.”
How the crisis unearthed the relationship between Binance and WazirX
Recall that last month, Binbits reported that the Enforcement Directorate of India froze the bank accounts relating to WazirX based on money laundering allegations. The issue sparked a brawl between Binance CEO Changpeng Zhao and WazirX co-founder Nishcal Shetty. The conflict led to a heated exchange of allegations from the two sides on Twitter.
Notably, the exchange of words unearthed the true relationship between WazirX and Binance. Around 2020, Binance announced the acquisition of the Indian-based cryptocurrency exchange. Thereafter, the entire cryptocurrency space maintained the opinion that Binance had been in control of the crypto exchange. However, when the issue emanated, Binance CEO swiftly disassociated himself and Binance from WazirX claiming Binance didn’t take over fully. Consequently, sparking a response from Nishcal Shetty, who claimed his team handed over properly to Binance.