There is a battle between the most popular exchange in the world Binance and the most popular exchange in India WazirX. Most popular crypto exchanges in India are facing summons from ED for money laundering. Now this money laundering case takes different turns and twists. This ED summons starts WazirX and Binance Battle. WazirX and Binance are blaming each other for different things and it becomes messy to understand what happens. It can be a trick to get away with a money laundering case or something real fishy happening behind the curtains. In this, all blaming fight crypto users who used WazirX are in confusion mode. So let’s see what we can learn from WazirX and Binance Battle
First, let’s understand why ED summons most of the Indian crypto exchanges. The probe is a part of the ED’s investigation into claims of money laundering against several non-banking financing businesses and their fintech partners, who have also been accused of engaging in predatory lending through loan apps. The businesses employ telemarketers who abuse personal information to force borrowers into paying high rates of interest.
The fintech businesses backed by Chinese investors were unable to get NBFC licences from RBI to lend money and instead signed MOUs with defunct NBFCs to exploit their licence.
[…] Some Chinese NBFCs without licences lend money via various applications. Many of these loan applications were halted when the criminal investigation began. Profits were then transferred by being converted into cryptocurrency and sent to an international cryptocurrency wallet. You can read the detailed modus Operandi here. […]
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