India's anti-money laundering agency is examining if Binance Holdings Ltd. had a role to play in an ongoing investigation involving betting apps, according to people with knowledge of the matter. Binance has been facing regulatory crackdown as nations intensify scrutiny of the crypto industry amid concerns that it is being used to conceal proceeds of money laundering & terrorism.
The Enforcement Directorate has summoned Binance executives for questioning and is awaiting a response, the people said, asking not to be identified as the matter is under investigation.
Allegations:
India is probing betting apps run by Chinese operators, which collected more than 10 billion rupees ($134 million) over the past 10 months, for allegedly laundering part of the money through the WazirX cryptocurrency exchange. Binance acquired WazirX in 2019. The questioning request is in connection with an ongoing probe against betting apps run by Chinese operators, which collected more than $134 million over the past 10 months, for allegedly laundering part of the money through the WazirX cryptocurrency exchange. It may be noted that Binance acquired WazirX in 2019.
While ED’s probe against Binance is related to an ongoing betting app investigation, the cryptocurrency major has been facing regulatory probes in multiple countries amid concerns over the use of virtual coins for illegal activities in the absence of regulations.
The operators of the apps used wallets with WazirX for buying, converting, and transferring the money to wallets on Binance's platform, the people said. The enforcement directorate has already issued a show-cause notice to WazirX over alleged contravention of foreign exchange management rules in transactions involving cryptocurrencies worth ₹ 2,790 crores.
The Indian agency found that Binance didn’t collect necessary know-your-customer documents from clients in most of the transactions, the people said. The exchange also didn’t collect information detailed by global anti-money laundering watchdog the Financial Action Task Force (FATF) for virtual currencies, they added.
Binance 's stand
A Binance spokesperson said the exchange had not received any summons in June or this month. “We have always been a proactive player in fighting crime,” the spokesperson said while adding, “We comply with regulator requests all around the world and we don’t comment on any specific engagements.” Rashbana Thansi
