Home News WazirX transparency report revealed; company locked 14k accounts in India

WazirX transparency report revealed; company locked 14k accounts in India

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WazirX transparency report revealed; company locked 14k accounts in India

Highlights:

  • Crypto Exchange WazirX Locked Around 14,500 Accounts During April-September.
  • WazirX is always committed towards investors’ safety and security.
  • The platform has reciprocated the same by maintaining and protecting them in multiple ways.

Indian crypto exchange WazirX has released its first transparency report, making it the first amongst cryptocurrency exchanges to do so. The report divulges details about how India’s most popular crypto exchange deals with financial compliance and law enforcement.

The company’s first compliance report comes almost four months after Zanmai Labs Pvt Ltd (WazirX), and its directors Nischal Shetty and Hanuman Mhatre were served a show-cause notice by the Enforcement Directorate for allegedly violating The Foreign Exchange Management Act, 1999 in transactions involving cryptocurrencies worth INR 2790.74 Cr.

Key highlights from the report:

  • During the period from April 2021 to September 2021, WazirX got 377 requests from LEAs out of which 38 requests were from Foreign Law enforcement agencies.
  • All the legal information requests received are criminal in nature & their compliance rate has been 100% for over 377 requests.
  • 14,469 accounts have been locked from April to Sep 2021. 90% of these activities are user-driven (customer requests to close accounts) and 10% are initiated by their legal team who had to lock the concerned accounts due to payment disputes or ongoing investigations for LEA cases.

In 2018, the RBI had issued circular instructing banks not to provide banking services to customers dealing with cryptocurrencies. In a 2020judgement, the Supreme Court overturned the circular. The court noted that the RBI cannot impose restrictions on cryptocurrencies when a legislative ban was absent.

Nischal Shetty, CEO, and founder, WazirX said:

“Initiatives such as the transparency report add credibility to the ecosystem and make the crypto world look more appealing to the outsiders. We aim to look at the bigger goals like positive regulations and consider ourselves as paving the way to it through innovative approaches.”

Earlier, government agencies such as Enforcement Directorate and the Income Tax department had raised red flags regarding money laundering and non-compliance with various regulations at crypto exchanges. To facilitate speedy compliance on requests of law enforcement agencies, WazirX has created a dedicated channel for clarity on transactions on its platform.

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