ED has issued another notice against WazirX, India’s largest crypto exchange. They questioned the legitimacy of the crypto transfers from one wallet to another.
According to the report from economics times, the Watchdog Enforcement Directorate (ED), has issued a notice against WazirX, India’s largest crypto exchange. The report from the Financial Watchdog comes at a climactic moment in crypto regulatory action in India.
The Notices inquiring about the validity of withdrawals from one crypto wallet to another, which can be a major obstacle for the Indian crypto exchange. The non-cooperation of banks has troubled the Indian Crypto exchanges in providing their services. The current notice can only raise the problems of crypto service providers in India.
WazirX has received the present notice from ED after regulator Watchdog issued notice to the crypto exchange in connection with a money-laundering scam involving China’s betting racket.
Effect on Indian Crypto Ecosystem
According to ED’s notice to WazirX, this notice could threaten the complete crypto trading ecosystem, previously, it was on the banking withdrawals.
The regulatory crisis in India has taken many turns. Initially, there were rumors of a possible list of crypto bills in the upcoming parliamentary session, but this did not happen as the crypto bill did not find a place in those 17 bills listed. Then came the news that an additional 18% tax would be charged on foreign exchanges serving Indian customers.
Many countries are working actively working on the regulation while, few countries have kept crypto regulation under existing finance laws, while others are developing new rules. Indians have had high expectations as the lifting of the banking ban in March 2020 by the Supreme Court. This ED notice could affect the developing Indian crypto ecosystem.
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