After ED freezes bank accounts, crypto exchange WazirX issues clarification

business-standard.com:

With the Enforcement Directorate (ED) pulling up crypto exchange WazirX and freezing its bank assets, the company on Tuesday came out with a statement, saying that it has a no-tolerance policy towards illegal activities.

“WazirX is a platform co-operated by Zanmai Labs Pvt. Ltd (Zanmai Labs) and Binance. Zanmai Labs has a no-tolerance policy towards illegal activities using WazirX. Users agree (in the user agreement) to use WazirX in accordance with applicable law. Users are signed up on WazirX only after they complete the KYC process, including submitting proof of address and identity,” said the company in a statement.

The issue hogged the limelight when minister of state for finance Pankaj Chaudhary stated in Rajya Sabha that the ED has served WazirX a notice under the FEMA Act.

The ED is investigating two cases related to crypto-currency against WazirX under the provisions of FEMA, he said in a written reply to the Rajya Sabha.

“We have fully cooperated with the ED for several days and have responded to all queries fully and transparently. ED appears to be investigating the transactions of certain users and Zanmai Labs has no affiliation to such users. It is unaware about the purpose of their transactions,” said the company statement.

Meanwhile, with the ED heat on WazirX, Binance, which also owns WazirX, said it never owned the company as the transaction was not completed. Both the founders Changpeng Zhao of Binance and Nischal Shetty of WazirX got into a war of words on Twitter as well.

Binance, on Monday, also came out with a statement that it will be removing the off-chain fund transfer channel between both the platforms from August 11.