Crypto exchanges begin blocking accounts post-government signals potential danger

Crypto exchanges in India have begun blocking and reporting trading accounts, which handle dubious trades after government agencies raised red flags over cryptos being utilized for money laundering.

Self-regulation is introduced during the time frame when the country is yet to settle on any regulations around cryptos or the method to tax them.

Industry analysts declared that investigators including the Enforcement Directorate, cybercrime officials and the income tax department, have raised red flags in the previous few months.

Additionally, top crypto exchanges are receiving requests from foreign investigators related to specific dubious accounts.

For example, one of the largest crypto exchanges in India, WazirX currently declared the count in what it calls a ‘transparency report’.

The exchange received 377 requests from legal enforcement agencies this year between April and September. Out of these, 38 requests were from foreign law enforcement agencies.

The cryptocurrency exchange blocked about 1,500 accounts.

Overall, the exchange blocked 14,469 accounts. Although, many of them were after customers told them to stop services or there were some other payment problems.

In India, several regulators had raised red flags around specific crypto transactions. Exchanges have declared that they’ve created a strong internal anti-money laundering policy also.

The exchanges waking up to other regulators and money laundering also come at a time when the country is planning to introduce a crypto regulation.

There has always been regulatory doubtfulness around crypto and if or not it can be utilized for illegal activities from money laundering to purchasing drugs.

Author: Diksha Khiatani

A writer by day and a reader at night. Emerging from an Engineering background, Diksha is a travel freak and anxious to explore different cultures and religions. Inclined towards the off-beat places, she wishes to uncover the secrets on her Scooty (if possible). She always grabs some time to take a quick nap, listen to music, skating and eat a brownie.

Leave a Reply

Your email address will not be published.