The Enforcement Directorate has announced that it has sent a notice towards the largest cryptocurrency exchange of India, WazirX and its directors regarding a money laundering investigation. Let’s look at the information regarding the money laundering case and the amount involved.
On 11 June 2021, the Enforcement Directorate had issued a show cause notice to the largest cryptocurrency exchange in India, WazirX. The notice provided is for going against the law of FEMA 1999 (Foreign Exchange Management Act). The cryptocurrency exchange has been said to be involved in the transactions involving cryptocurrencies which are estimated to be a worth of INR 2,790.74 crores.
The Enforcement Directorate had mentioned in a statement that it had initiated the statement regarding FEMA due to the ongoing investigation regarding the investigation of money laundering which involves various betting online applications that are owned by the Chinese.
Names mentioned in the notice issued to WazirX by ED
WazirX is a cryptocurrency platform that is registered under the company name Zanmai Labs Pvt Ltd. The company was registered in the year 2017 in the month of December as a domestic cryptocurrency startup.
After the completion of the investigation, the central probe agency had issued a notice in which the name of the company and the name of the directors Hanuman Mhatre and Nischal Shetty have been mentioned. The global cryptocurrency exchange Binance had acquired WazirX in the year 2019.
WazirX Trading volume Growth
The Allegations on WazirX
During the duration of the investigation, it was found that the Chinese nationals who were accused of the money laundering case had laundered the proceeds of the crime which is said to have a worth of INR 57 crores.
The laundering of the amount is said to be converted into cryptocurrencies from the Indian National Rupee. The amount was exchanged to the Tether cryptocurrency and was then transferred to the wallets on the Binance Exchange that is registered in the Cayman Islands.
The wallet transaction was expected to be based on the instructions that were received from abroad. The Enforcement Directorate also alleged that the cryptocurrency exchange WazirX also allows a wide range of transactions with cryptocurrencies which include the transactions to the exchanges or INR and vice-versa, peer to peer transactions, exchange of cryptocurrencies and even the transaction of cryptocurrencies that are held in its pool accounts to various other exchanges.
The wallets can be held by anyone who can be foreigners in foreign locations.
What did ED found through Investigation upon WazirX
The ED had alleged that WazirX does not collect any required documents which is a proper violation of the basic mandatory Anti-money laundering (AML). They also added that it was against the Combating finance of terrorism (CFT) norms and also FEMA guidelines.
During the investigation, it was found that WazirX had received cryptocurrencies through its pool account from Binance exchange which had a value of around INR 880 crores and it was also found that there was a transfer of cryptocurrencies from WazirX to Binance exchange which had a value of around INR 1,400 crores. However, these transactions were not recorded on any blockchain and could not be audited or investigated.
The investigation also found that the cryptocurrency exchange WazirX could also transfer cryptocurrencies to people from any location or any nationality even without proper documents which makes it a safe haven for people who are involved in illegal businesses and money laundering. It makes itself a crypto exchange supporting illegitimate activities.
WazirX founder stated on Twitter they didn’t receive any show-cause notice till now from the Enforcement Directorate and they comply with all applicable laws.
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WazirX is yet to receive any show cause notice from the Enforcement Directorate as mentioned in today's media reports.
WazirX is in compliance with all applicable laws.
— Nischal (WazirX) ⚡️ (@NischalShetty) June 11, 2021
Conclusion
WazirX one of the largest cryptocurrency exchange has been alleged for promoting illegal and illegitimate activities through their exchange and even the parent company of WazirX, Binance exchange has also the involvement in the case. The Indian Government has conveyed that they were open to exploring the new technologies like cryptocurrencies for improving their governance.
FAQ
Why did ED issue notice to WazirX?
ED has issued a notice to WazirX, and its Directors Nischal Shetty and Sameer Hanuman Mhatre for alleged violation of the Foreign Exchange Management.
Is WazirX owned by Binance?
Yes, WazirX is owned by Binance and is often acknowledged as the world’s largest cryptocurrency exchange by trading volume.
Who is the CEO of WazirX?
Nischal Shetty is the CEO and Founder of WazirX who founded WazirX on march 2018.
Dogecoin was created in 2013 by Jackson Palmer (Adobe Employer) $ Billy Palmer (Software Engineer). What began as a joke, is now making investors rich. It’s thrilling to see that there are people out there willing to buy Dogecoin for a higher price. That’s what keeps on driving more and more traffic.
This joke cryptocurrency has risen above 26,000% in the past 6 months. Of course, it has competitors but they are nowhere close to Dogecoin.
Elon Musk, with his charming little tweets and launched this cryptocurrency to new heights just like he did with SpaceX. Young people idolize him for being rich and cool. His tweets spiff up the currency which leads to rising value.
Everybody wants a slice of this cake. You must want it too. Therefore, we bring you answers to the most asked question i.e., How to buy Dogecoin in India?
Coinbase, which the top cryptocurrency trading place, does not allow Dogecoin. At this point, you should understand what exactly is cryptocurrency.
What is cryptocurrency?
Cryptocurrency is a digital asset that is designed to be used over the internet. It is decentralized which means the government has no control over it.
Here is the step-by-step procedure to buy Dogecoin in India:
Install trustworthy and reputed crypto trading platforms such as WazirX, CoinDCS, Bitbns, Zebpay, or Coinswtich.
Set up your account through registration and verification of KYC. (Remember to enable 2-factor authentications to make it super secure.)
Add your bank and UPI details.
After you deposit money into the exchange, you can use the same to buy Dogecoin or any other cryptocurrency for that matter.
You can buy Dogecoin through a Credit card, Debit card, or other e wallets like Mobiwik, Bhim transfer.
Satoshi Nakamoto, the cryptocurrency’s pseudonymous investor owns most bitcoin.
Did Warren Buffet invest in Bitcoin?
Warren Buffet told CNBC that “I don’t have any Bitcoin. I don’t own any cryptocurrency, I never will,”.
Why is Dogecoin a joke?
Dogecoin started in 2013 as a joke to the “doge” meme that was all over the internet at the time. But It is now the fifth-largest cryptocurrency in the world.
Conclusion
Now you can start trading Dogecoins too. A quick tip: Keep an eye on Elon Musk’s tweets to track the path of your investments. Also, remember to be safe while doing such transactions and beware of frauds.
The crypto ecosystem has been doing news rounds ever since the RBI proposed a ban on using or trading or holding Crypto currency in 2018. It was all cloudy for the crypto investors until recently when the Supreme court in 2020 quashed the ban on trading on virtual currencies.
RBI has been reluctant to let the crypto currencies co-exist in the Indian economic system. Crypto currency is a booming sector and has put so many miners on the map.
So why is RBI not allowing crypto trade in India? Will it ever oblige? How is crypto business coming along in India? We answer all these questions in this post. Read on to find out more.
In 2018, RBI issued a circular to take down crypto currencies from the Indian virtual trade. The Internet Mobile Association Industry- a non profit organization and a group of corporations dealing in crypto exchange platforms stood up against this circular in the Supreme court.
RBI, in a Financial Stability report, defined virtual currency as unregulated digital money which is controlled and issued by its developers and accepted by a specific community. RBI exercised its power to ban private digital currencies and their trade/circulation through any financial institution in India.
However, in March 2020, this circular was quashed by the Supreme court saying that though RBI has the authority to regulate virtual currencies, it was disproportionate to impose prohibition on trading of crypto and therefore, ultra vires the constitution.
According to the survey of Unique Identification Authority of India (UIDAI), the government has issued over 122 crore Aadhar cards as of March 2020. That means it has covered 90% of the population and out of 110 crore bank accounts in India, 96 crore are linked to Aadhar.
This could be one of the reasons for banning crypto since it is rumored that RBI wants to launch a digital currency of its own and is sparing the competition. The said digital currency is to be called Lakshmi-named after the Goddess of wealth.
RBI has been pretty stringent with its ban on crypto. According to the “Banning of crypto currency and regulation of official digital currency bill 2019” , the draft sentences 10 years of prison to anyone who mines, circulates or holds private digital currencies. This sentence surpasses the 7 years of imprisonment for money laundering.
The Supreme Court’s decree paved way for some relief as it states that virtual currencies are not legal tender but tradable commodities and lacks precise definition and the RBI circular has disproportionately invaded the investors’ rights.
Crypto, especially Bitcoin seems to have come around with the retail investors in India. More than 5 million Indians have invested in Bitcoin.
Crypto is not just being used as exchange in restaurants, shopping, payments and insurance but has now become a prominent source of funding for start ups in India. Start ups are longingly looking at Initial Coin Offering (ICO) as fund raising options. But the situation is contemplating since the ban was announced.
Almost 30 to 40 start up companies from India have tried to pursue the ICOs. The ban has caused these companies to choose foreign jurisdiction and have raised funding from foreign investors.
The ban could bring uncertainty among the retail investors in India.
Nischal Shetty (CEO, WazirX) said – “Criminalizing digital tokens could destabilize existing businesses eroding the wealth of millions”
Crypto startups are developing slowly and steadily because of the regulatory reforms in India. Though India has been gaining exposure on the global front, the traditional methodology of the government seems to hold back a few areas such as the crypto economy. Despite this, there are a few Crypto startups which are propelling and being recognized.
CoinDCX
The Mumbai based startup provides users with various crypto based financial products. Users can buy and sell more than 100 coins instantly with INR.
Nuo
Nuo is a decentralized finance (DeFi) application that converges sellers and borrowers through smart contracts. Nuo network has also launched a new digital banking platform called Juno, which is built on top of Ethereum and depends on Nuo protocol for Nuo banking services.
WazirX
WazirX is the leading crypto exchange platform in India at present. It was the first exchange in India to introduce a native token called the WazirX token (WRX) which has resulted in significant growth of engagement on the platform.
Crypto companies WazirX and CoinDCX along with several others are running a hashtag campaign #IndiaWantsCrypto on twitter to raise awareness about the bill and its consequences. The campaign has already found support from several start-up founders and angel investors such as Sahil Lavingia, Rajiv Mantri and Balaji Srinivasan.
Crypto Ban – Opinions
The sovereign insists on not having private crypto currencies in the Indian ecosystem since it considers crypto as something that is foreign and threatens security of its citizens. Finance Secretary Ajay Bhushan Pandey in an interview said that crypto currency is unconstitutional as it is produced outside India and cannot be treated as currency but a commodity.
Although the government might not completely impose a ban on crypto, the law intends to create a facilitative framework under the guidance of RBI, exceptions will be provided to promote the underlying technology of crypto currency and its uses. However, many of the retail investors think differently.
Ex CTO of Coinbase and General Partner at Andreessen Horowitz, Balaji Srinivasan, an entrepreneur and an investor, believes that crypto ban is as bad as internet ban. In an interview he said that eventually in the coming years India will have to accept crypto as it already co existing in other countries as an alternative currency. India has great potential not just in terms of selling but also producing which makes it a strong contender amongst the developing nations.
Crypto Ban – FAQs
Why did RBI ban Cryptocurrency?
It is rumored that RBI wants to launch a digital currency of its own and is sparing the competition. The said digital currency is to be calledLakshmi-named after the Goddess of wealth.
What is Crypto Ban?
In 2018, RBI issued a circular to take down crypto currencies from the Indian virtual trade. According to the “Banning of crypto currency and regulation of official digital currency bill 2019” , the draft sentences 10 years of prison to anyone who mines, circulates or holds private digital currencies. This sentence surpasses the 7 years of imprisonment for money laundering.
What is #IndianWantsCrypto campaign?
Crypto companies WazirX and CoinDCX along with several others are running a hashtag campaign #IndiaWantsCrypto on twitter to raise awareness about the Crypto Ban bill and its consequences
Which are the major crypto startups in India?
Coin DCX, NUO, WazirX are some of the major crypto startups in India
Cryptocurrency wallets are software that can be used to view cryptocurrency balances and make transactions. Digital wallets expedite the rates of cryptocurrency transactions by facilitating the sending, receiving, and storing of cryptocurrency. Most wallets these days are loaded with features that enhance the process of trading cryptocurrency. The top bitcoin wallets in India usually have a two factor authentication to keep it secure.
Having a cryptocurrency wallet in India is essential because it allows you to move funds as per your will and offers you the desired level of security. Some wallets even provide you with the convenience of trading multiple cryptocurrencies at once. Here are the few of the best app to buy cryptocurrency in India.
A cryptocurrency wallet is an app that allows cryptocurrency users to store and retrieve their digital assets. They are basically apps just like those you might run on a smartphone or computer. As with conventional currency, you don’t need a wallet to spend your cash, but it certainly helps to keep it all in one place. When a user acquires cryptocurrency, such as bitcoins, she can store it in a cryptocurrency wallet and from there use it to make transactions.
Bitcoin is the most popular and widely used cryptocurrency, but others building upon its blockchain technology have emerged, and any of them can be stored on a cryptocurrency wallet. Indian Bitcoin Wallets can hold multiple cryptocurrencies. The most easiest and basic way to buy bitcoin in India is by using the Bitcoin wallets in India and the users that are interested in bitcoin are asking questions on which one is the best cryptocurrency exchange in India and the best bitcoin wallets in India.
How do Cryptocurrency Wallets work?
When you want to acquire cryptocurrency, whether by purchasing it in currency exchange or receiving it as a gift or as revenue, you direct the sender to a unique cryptographic address issued by the wallet. Each wallet type is a little bit different, but in general, any given wallet will work with one or more cryptocurrencies and will be able to store one or more cryptocurrency-specific public addresses.
Public addresses are like cryptocurrency-specific account numbers, they can be used to receive a specific type of cryptocurrency (for example, to receive Bitcoin, you need a Bitcoin address) and can be shared publicly. Spending with the wallet is as simple as scanning a retailer’s QR code or directing a specific amount of bitcoins to the retailer’s public address. Here are some of best app wallet for cryptocurrency:
There are several good bitcoin wallets in the market today and it’s up to the users to decide which features they want.
How secure and trustworthy the wallet is – The user can double check the wallet on bitcoin forums and check for its reviews. Some wallets offer two factor authentication like the mobile OTP and fingerprint/pin code for secure transactions.
Multi-signature – Check whether or not the wallet has the option of multisign in addition to a safe platform. This will help protect your bitcoin from theft and attackers.
Does it have transparency – the crypto wallet’s provider must provide transparency and clear identity and a code open source.
Price and charge for holding cryptocurrency – There many alternative wallets that are free on mobile and desktop which allow its users to download and start using them without charging anything.
User interface – The wallet must be easy to use especially for a beginner.
Types of Cryptocurrency Wallets
There are several types of wallets you can use including online, offline, mobile, hardware, desktop, and paper:
1) Mobile Wallets
2) Hardware Wallets
3) Web Wallets
4) Desktop Wallets
Each type refers to what type of medium the wallet is stored on, who is in control of the wallet, and whether or not the data is stored online.
Based on the above types, the following are the best cryptocurrency wallets app in India 2021.
WazirX
WazirX is one of the best cryptocurrency wallets in India and also the fastest growing cryptocurrency exchange in the country as it as over 900,000 users.It is also known as the most secure and safest wallet for cryptocurrency as it allows its users to buy and sell Bitcoin, Ripple, Ethereum, Tron, Zilliqa and 100 other top cryptocurrencies.
WazirX is India’s largest online cryptocurrency trading portal that can process millions of transactions at the same time. For security, the platform uses two factor authentication such as Google authenticator and the mobile OTP based authentication. WazirX has partnered with Binance which is the world largest crypto exchange.
Zebpay
Zebpay was India’s first Bitcoin trading portal, and is currently one of the best cryptocurrency exchange in India 2021. This multi-cryptocurrency exchange platform is available in over 162 countries and offers a quick KYC verification and a cryptocurrency trading portal for exchange.
Zebpay is also very trustworthy as it is designed to keep your cryptocurrency secure as 98% of coins is stored in cold wallets, robust internal controls and fingerprint/pin code for outgoing transactions. Despite being the best bitcoin wallet in India 2021 as it allows its users to transfer your crypto coins to other exchanges or your own wallet.
Coinbase is an online cryptocurrency exchange in India that comes under the category ofmobile wallets. You can buy and sell bitcoin, Ethereum, Litecoin using Coinbase. Coinbase also offers a mobile wallet facility. You can store and perform transactions using the Coinbase wallet. You can download Coinbase from Google Play and Apple Store.
The features of Coinbase bitcoin wallet include:
Friendly & Easy to use Interface
Backup private keys to the cloud to avoid the loss
Secure User-Controlled Crypto Wallet using biometric authentication
Store all cryptocurrency at a single place – Multi-coin support
Secure User-Controlled Crypto Wallet using biometric authentication
Trezor Wallet
Trezor Wallet
Trezor is a pioneer and the best hardware wallet for cryptocurrency in India. Trezor provides a portable USB device that can be connected to your computer. It offers a high level of security, and can also function seamlessly on a malware-infected computer. It supports a wide variety of cryptocurrencies which include Bitcoin, Ethereum, Litecoin, Ethereum Classic, ZCash, Dash, and Bitcoin Testnet.
This cryptocurrency hardware wallet is one of the most secure wallets as hacking into it is virtually impossible without having access to the physical device. It also offers one of the best user interfaces which provides unparalleled convenience. Although there are various advantages to using Trezor, users are often bothered by the meager number of cryptocurrencies that you can access through Trezor. Overall, Trezor is a great wallet that can prove to be very fruitful for its users. In India, you can get a Trezor T Model in the range of Rs. 12,500 to Rs. 14,000.
Binance is the top cryptocurrency exchange wallets, as it allows users to be assured of getting a high amount of security and amazing customer service providers. Binance gives you the option of creating your wallet when you sign up for their services. The entire process of onboarding is quite smooth and the user interface is lucid and easy to understand.
Although Binance can be a good option, one of the downsides of using Binance is that it does not allow any fiat dealing. Since Binance offers its services at a high speed, it does a commendable job at a fast pace, which makes it one of the best in the business.
Exodus Bitcoin Wallet
Exodus is a desktop-based bitcoin wallet that can be used to store your private keys on any of the Windows, Mac and Linux PC’s hardware. To use this cryptocurrency wallet app, you need to download and install the application to use this wallet. Its main features include:
Use of QR code address for sending and receiving bitcoin
Support to 100+ Cryptocurrencies
See overall portfolio on screen
Built-in exchange
Jaxx
Jaxx wallet
Jaxx is one of the best crypto wallets in India that offer cross-platform support. It can function across all your devices and allows you to sync your mobile, computer, and other devices. Currently, Jaxx provides support for seven different kinds of cryptocurrency assets. Nine different platforms support Jaxx, which includes Windows, Apple, Linux, Android, iOS, as well as, Chrome, and Firefox.
It can be downloaded for free and charges a transaction fee for the trades that you carry out through your wallet. It is integrated with the exchange platform, ShapeShift, which further allows you to trade various cryptocurrencies. Jaxx has been lacking a few security features like the lack of two-factor, which raises a few questions. Setting aside this fact, Jaxx allows a high level of compatibility and seamless integration among various platforms.
These top bitcoin wallets in India come in the different form such as a device, an app and even a website and are all known for different things. Each and every cryptocurrency wallet has its own unique wallet address that is used to initiate transactions and exchange of currencies and is up to the user/customers to choose what best for them.
Frequently Asked Questions
What is the best app to buy cryptocurrency in India?
The best Cryptocurrency wallet in India is WazirX.
What are the best bitcoin wallets in India in 2021?
The best bitcoin wallet for India are WazirX, Zebpay, Jaxx, Exodus, B
Can you buy cryptocurrency in India?
Cryptocurrencies are not illegal in India, but they are also not regulated. Which means that people can buy and sell Bitcoin and hold it as an investment but there is no governing body that will look after it.
What is the safest cryptocurrency?
Bitcoin is the safest cryptocurrency in India.
What is a bitcoin wallets?
A Bitcoin wallet is a software application that allows customers to store and track their Bitcoins.
Alan Joseph
