The action against WazirX was initiated days after the Reserve Bank of India (RBI) asked commercial banks to carry out the necessary customer due diligence process to.
Earlier today, the Enforcement Directorate issued a press release that said the government agency has issued a show cause notice to Nishcal Shetty and Sameer Mhatre for cryptocurrency transactions worth Rs 2,790.7 crore that violated FEMA rules.
According to a note by the Enforcement Directorate, WazirX was being used by foreigners to launder gambling proceeds. The ED says that Chinese nationals used the crypto exchange to launder Rs. 57 crore, and noted that users can transfer money without proper documentation.