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WazirX news: ED issues FEMA notice to India’s largest cryptocurrency exchange WazirX | India Business News



NEW DELHI: The Directorate of Enforcement announced on Friday that it had filed a complaint with the country’s largest cryptocurrency exchange for allegedly violating the Foreign Exchange Management Act (FEMA) for transactions valued at over Rs 2,790 billion.
WazirX, registered under the name Zanmai Labs Pvt Ltd, was founded as a domestic cryptocurrency start-up in December 2017, and its directors Nischal Shetty and Hanuman Mhatre were named along with the company in the notice issued by the central investigation named agency upon completion of the Investigations.
The agency issued a statement that it stumbled upon the company’s transactions while an ongoing money laundering investigation into illegal “Chinese-owned” online betting applications.
The cause display applies to transactions valued at Rs 2,790.74 billion, the ED said.
“It was found that the accused Chinese citizens laundered about 57 billion rupees from the proceeds of crime by converting Indian rupee (INR) deposits into cryptocurrency tether (USDT) and then issuing them on the basis of instructions Binance (exchange on the Cayman Islands) received remittances from abroad, “it said.
Binance is considered the market leader in this area and took over WazirX in 2019.
“WazirX enables a wide range of cryptocurrency (CC) transactions, including exchanges with INR and vice versa, CC exchanges, person-to-person (P2P) transactions, and even the transfer / receipt of cryptocurrencies held in its pooled accounts on other exchanges’ wallets that foreigners might hold in overseas locations, “the ED claimed.
WazirX, it alleged, did not collect the required documents, clearly violating basic anti-money laundering (AML) and anti-terrorist financing (CFT) regulations, as well as FEMA guidelines.
“During the study period, WazirX users received incoming cryptocurrencies worth 880 billion rupees from Binance accounts via its pool account and transferred cryptocurrencies worth 1,400 billion rupees to Binance accounts.
“None of these transactions are available on the blockchain for examination or investigation,” the ED claimed.
It was found that WazirX customers can transfer “valuable” cryptocurrencies to anyone regardless of their location or nationality “without” proper documentation, making it a safe haven for users looking for money laundering and other illicit activity, alleged the Agency.
The FEMA violation report was served on the company after investigating the alleged violations, official sources said.
The Indian government has stated that it is open to evaluating and researching new technologies such as cryptocurrencies to improve governance.
A related bill could be introduced in parliament and recommendations from a high-level internal ministerial committee on digital currencies could be included, the government said.

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Cryptocurrency faces existential threat as crackdown gathers steam



Photo credit: Pixabay / CC0 Public Domain

Cryptocurrency firms are battling for lobbyists and subpoenas in a potentially existential battle to regulate the multi-trillion dollar industry.

Last month, lobbyists from firms seeking representation in Washington were overwhelmed as regulators threatened cryptocurrency companies with lawsuits or injunctions. Current and former enforcers say these warnings are likely just the beginning.

Over the past decade, the cryptocurrency market has grown from a little-known project shared among technologists and libertarians to a massive and largely unregulated industry. But while the sector has found innovative ways to digitally track possessions and send money cheaply, it has also launched savings accounts and mutual funds, products that regulators say should follow the same rules as those in traditional financial networks.

As the cryptocurrency industry prepares for a regulatory battle, some lobbyists asking to withhold their names to discuss customer matters said they were so inundated with crypto firms trying to hire them in August that they had to turn down some potential customers . Some of the crypto firms said they were being targeted or expected by regulators, the lobbyists said.

Earlier this month, the Securities and Exchange Commission announced to Coinbase Global Inc. that it could be sued for offering high-interest accounts.

“These firms should definitely prepare if they haven’t already,” said Owen Tedford, an analyst with Beacon Policy Advisors in Washington. “It wouldn’t be the least bit surprising if the Coinbase announcement were, in some ways, a warning shot for the entire industry.”

Almost a third of the new registrations by lobbyists in the financial sector in August and September concerned crypto companies or advocacy groups, according to Senate documents. Coinbase hired two new firms in August, doubling its presence in Washington, including Andrew Olmem, deputy director of the National Economic Council at Trump’s White House. A subsidiary of the Diem Association, a group of companies including Facebook Inc. that plans to launch a new cryptocurrency, hired new lobbyists, as did the Digital Currency Group, a cryptocurrency-focused venture capital firm.

SEC chairman Gary Gensler took the first blood last week. On Friday, Coinbase tacitly gave up the loan product and announced the move in a brief update to a month-old blog post.

“Crypto loans may be the easiest way for the SEC to break into the industry, but it’s very clear that they deal with cryptocurrencies themselves,” said Tyler Gellasch, a former counsel at the SEC, the Healthy Markets Association directs whose members are large asset managers. If many cryptocurrencies are considered securities, exchanges like Coinbase and the rest of the crypto industry will “not be able to make money the way they do today”.

Established crypto-lending institutions like BlockFi Inc. and Celsius Network Inc. have already raised more than $ 35 billion in deposits of traditional cryptocurrencies like Bitcoin and stablecoins, which are valued at $ 1 and are used as a substitute for fiat money.

Crypto industry executives have said they suspect competing firms in traditional finance, such as large banks, are responsible for driving regulators forward.

At an “Ask Me Anything” event with customers in September, Alex Mashinsky, chief executive officer of Celsius Network said he believed bank managers called the SEC and state regulators to complain about crypto lending firms.

“We have to work twice as hard because these people at both state and federal levels have the biggest lobbyists working for them,” Mashinsky said. “We will win. The fight is for all the money in the world, right?”

The recent battle has centered around crypto loan firms, which sometimes offer depositors double-digit returns. The firms say they can do this by lending the deposits at even higher rates to institutional investors who need to borrow crypto for their own trading.

Regulators believe that many of the companies should have registered their products as securities, making them subject to additional disclosure and supervision. The products are sometimes marketed as an alternative to bank savings accounts, and some regulators have said investors might think they were taking low risk.

The dispute came to a head earlier this month when Coinbase CEO Brian Armstrong accused the SEC of “sketchy conduct” in a series of tweets and denied that Coinbase’s proposed accounts were securities.

Gensler said during a Senate hearing on banking last week that Coinbase has not registered with the SEC even though “dozens of tokens” on its exchange could be securities. A Coinbase spokesman said the company doesn’t believe it has any securities on its platform.

Crypto executives say they are frustrated that regulators are threatening to sue them instead of instructing them on how to obey the law.

BlockFi CEO Zac Prince said at the SALT conference in New York last week that the SEC and other regulators need to clarify what is allowed in his industry. Five states have already taken action against his company, accusing it of offering unregistered securities to residents. Prince said at the conference that federal guidance was needed, not state action. BlockFi announced on Wednesday that New Jersey had agreed to extend its order to suspend the offering of the accounts through December.

Even some companies with similar products that have been filed with the SEC are craving more regulatory guidance. For example, Circle Internet Financial Inc. offers corporate clients high-yield deposit accounts and has reported the SEC under an accredited investor exemption, said CEO Jeremy Allaire.

“We’d like to understand if regulators in the United States are regulating crypto lending and want to work with the industry to define what’s important to them there and set the rules for engagement,” Allaire said. “The United States has been extremely reluctant to provide clarity on digital assets.”

For their part, the enforcers believe the law is already clear. During the bank hearing, Gensler pointed to longstanding court rulings that helped define the agency’s jurisdiction, saying that many crypto products and even cryptocurrencies are likely to fall under their jurisdiction.

Gellasch, the former SEC attorney, said that if exchanges offer securities, they may be forced to register with the agency.

Some Washington crypto advocates said they hope disputes like the one between the SEC and Coinbase make it to court so that a judge, instead of agency staff, can determine what is within limits for companies.

“I want you to have the courage of your beliefs and fight it if you really think your product is not a security,” said Jerry Brito, executive director of Coin Center, a think tank for crypto advertising.

Joe Rotunda, director of the enforcement division of the Texas State Securities Board, said other crypto lending firms shouldn’t expect his agency or other states to hold back, even if the SEC begins to move.

“I’m very relieved to see federal regulators scrutinizing cryptocurrency custody accounts,” said Rotunda, who said his agency and others are still investigating other companies offering similar products. “At the same time, they still haven’t done anything.”

Regulators frown as crypto players jump into banking

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Invesco is partnering with Mike Novogratz’s Galaxy Digital to launch crypto ETFs | Currency News | Financial and Business News



  • Invesco is partnering with Galaxy Digital to launch a crypto ETF in order to be ready when the SEC approves digital asset funds.
  • The companies aim to have the ETF track the performance of crypto as it trades like a stock.
  • “Ultimately, we believe we can define this new market,” said Invesco’s John Hoffman.
  • Sign up for our daily newsletter here, 10 things before the opening bell.

Invesco confirmed in a regulatory filing on Tuesday that it is partnering with Galaxy Digital Holdings to launch exchange-traded cryptocurrency funds and join a long list of over two dozen companies longing to be the first in the country, who set up a fund backed by digital assets.

Invesco, one of the largest ETF operators in the United States, and Mike Novogratz’s Galaxy Digital aim to have their ETF track the performance of cryptocurrencies as they trade like a stock.

First in the pipeline is a Bitcoin-holding ETF that Galaxy proposed last year and that Invesco joined as a sponsor after the market closed on Tuesday, the Wall Street Journal reported for the first time.

“This is about broadening your horizons,” John Hoffman, Invesco’s Head of Americas, told The Journal. “We ultimately believe that we can define this new market.”

Invesco and Galaxy are preparing their ETF to be ready in case the SEC ever approves crypto funds.

According to Hoffman, Invesco initially teamed up with Galaxy, a cryptocurrency enthusiast and former hedge fund manager Novogratz, which was founded in 2018 based on the company’s expertise in this area.

In June, Invesco also submitted two cryptocurrency-focused ETFs – the Invesco Galaxy Blockchain Economy ETF and the Invesco Galaxy Crypto Economy ETF – that will invest in stocks that focus on digital assets and technology.

“There are a number of ways to bundle these commitments. It’s no different from any other asset, ”Hoffman told The Journal. “We started with stocks and invested in companies involved in the exploration and production of energy. Then we got into futures and added other ways to get these various exposures.”

But despite the enthusiasm of various companies – with Cathie Wood’s Ark Invest the newest fund provider to submit its own application – the SEC does not seem to share this enthusiasm.

As of now, the regulator, led by Gary Gensler, has not yet approved a cryptocurrency ETF, including those proposed by VanEck, Valkyrie Investments and FirstTrust / SkyBridge. She has extended the decision to approve VanEck’s ETF by 60 days until November 14th.

Gensler previously taught courses on blockchain and cryptocurrencies at the MIT Sloan School of Management, which led some to believe that he would be more receptive to digital assets. But while he was running the SEC, he cracked down on cryptocurrencies. Most recently, he compared stablecoins with poker chips.

However, he has hinted that he is more open to cryptocurrency ETFs, suggesting that those who adhere to the strictest mutual fund rules could offer investor protection. He also seems inclined to approve a futures-based ETF.

The US is lagging behind other countries in approving Bitcoin ETFs, with Canada this year approving the first publicly traded Bitcoin ETF in North America, the Purpose Bitcoin ETF, as well as Ethereum ETFs.

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Top cryptocurrency prices today: Solana, Polkadot, Ethereum shed up to 6%



New Delhi: Cryptocurrencies continued their southward movement on Wednesday, thanks to volatility in global markets amid negative news about the Evergrand crisis from China and the US FOMC hit the result.

Aside from the US dollar-pegged tether, nine of the top 10 cryptocurrencies were trading lower at 9:30 a.m. IST. Solana lost more than 6 percent while Polkadot lost 5 percent. Ethereum lost 4 percent.

Global cryptocurrency market capitalization dropped over 3 percent from last day to $ 1.84 trillion. Similarly, the total crypto market size declined more than 12 percent to $ 136.31 billion.

“The market has seen a decline in bitcoin and altcoins in the red. Seasoned investors have held on to their investments and we hope the market will see an upward trend soon,” said Sharan Nair, chief business officer, CoinSwitch Kuber.

Cryptocurrency prices rebounded from 1-1 / 2-month lows on Tuesday as a heavy overnight sell-off amid concerns over a possible loan default from real estate developer China Evergrande eased slightly, but investors braced themselves for more volatility.

Cryptocurrency investment products and funds saw inflows for the fifth straight week as market sentiment for the sector continued to improve, data from digital asset manager CoinShares showed.

“The past 24 hours have remained pessimistic for the crypto market, with significant declines across the spectrum. Following the drop in ether below $ 3,000, altcoins suffered a major slump, ”said Edul Patel, CEO and co-founder of Mudrex.

“Long-term investors could potentially look at the dollar cost average at the current price point. The next 24 hours would be critical as the market would be in a pricing mode,” he added.

Robinhood Markets Inc is testing new crypto wallet and cryptocurrency transfer features for its app that would allow customers to send and receive digital currencies like Bitcoin, Bloomberg News reported.

Bitcoin mining will generate up to 30.7 kilotons of electronic waste every year from May 2021, which is comparable to the waste of small IT equipment produced by countries like the Netherlands, a new study found.

Crypto shopping cart: brief look

Bitcoin: $ 42,102.57, down 1.56%

Ethereum: $ 2,873.02, down 4.37%

Tether: $ 1, up 0.01%

Cardano: $ 2.05, down 2.48%

Binance Coin: $ 353.29, down 3.02%

XRP: $ 0.9242, down 2.82%

Solana: $ 128.71, down 6.02%

USD coin: $ 1, minus 0.02%

Dogecoin: 0.2028, minus 2.94%

Polkadot: $ 27.34, down 5.01%

(Note: price change in the last 24 hours)
(Source:, as of 9:30 a.m., IS on September 22, 2021)

Tech View from ZebPay Trade Desk
Binance Coin (BNB) is the native token of the world’s largest exchange, Binance. BNB has a market cap of $ 60 billion and is the fifth largest asset.

For the last week or so the market has been in the red and BNB is no exception as it has fallen nearly 20 percent week in and week out. However, volumes have held up well and have seen a spike in the past 2 days as the asset looks pretty attractive at current levels. The NBB is currently trading at $ 355.

BNB rose 103 percent from $ 254 to $ 518 in 2 months. Following this move, the asset encountered strong resistance and formed a “double top” or “M” (bearish reversal) pattern at higher levels with a neckline of $ 448. When the neckline was broken, the bears took the lead and prices saw a sharp dip to the low of $ 336.

The NBB is trying to get support at the crucial $ 340 level. If prices hold and hold above $ 340 we could expect some recovery rally and if the close-based support is broken the asset could slide further to $ 300 levels.

Main stages
Support: $ 340, $ 305

Resistance: $ 380, $ 448

(The time is in UTC and the daily time frame is 12:00 p.m. – 12:00 p.m. UTC)

(The views and recommendations given in this section are the analysts’ own views and recommendations and do not represent those of Please consult your financial advisor prior to entering into any position in any of the assets.)

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