WazirX gets a show cause notice from Enforcement Directorate for cryptocurrency transactions worth ₹2,790 cr

WazirX, the Indian cryptocurrency exchange, has been served a show-cause notice by the Enforcement Directorate (ED) for “contravention of the FEMA (Foreign Exchange Management Act), 1999” for cryptocurrency transactions worth ₹2,790.74 crores. ED shared this news via a tweet on Friday and also said in a press release that Chinese nationals had used WazirX to “launder gambling proceeds worth ₹57 crores”.

Launched in 2018, WazirX is an app/website where you can buy and sell cryptocurrencies while making transactions in rupees. While the legality of cryptocurrencies in India has been in flux for a while, there is a lot of interest in them as an investment option. Cryptocurrency has also been used for illegal payments, particularly on the Dark Web since funds are hard to track through cryptocurrency transactions.