Authorities in India are reportedly investigating the Binance cryptocurrency exchange as part of an ongoing money laundering case in China that has brought in more than 10 billion rupees ($ 134 million).
Binance’s regulatory problems continue
India is reportedly investigating whether the global cryptocurrency exchange Binance played a role in a Chinese money laundering program involving betting applications, local media reported on Friday, citing people with knowledge of the matter.
The country’s Enforcement Directorate (ED), a law enforcement agency under the finance ministry, summoned Binance executives for questioning, according to people who asked not to be identified because the The case is still under investigation.
The case centers on betting applications managed by Chinese operators. They are said to have made more than 10 billion rupees in the past 10 months. They were believed to have laundered some of the money through the local Indian crypto exchange Wazirx, which was acquired by Binance in 2019.
Responding to the news, Binance said in a statement:
We did not receive any summons in June or July of this year. According to information available in the public domain, the summons was only sent to Wazirx.
The exchange continued: “We are working closely with regulators, law enforcement and industry leaders around the world to strengthen the safety and sustainability of the industry while delivering the best services and protection to our users. ”
A growing number of regulators around the world have warned Binance against operating in their jurisdictions without permission. They include regulators in Malaysia, Japan, UK, Cayman Islands, Hong Kong, Thailand, Germany and Lithuania.
Commenting on the intensification of regulatory scrutiny, Binance CEO Changpeng Zhao said the company is looking for a CEO with strong compliance background and Binance wants to license everywhere and become a financial institution.
What do you think of India investigating Binance and other regulators warning of the exchange? Let us know in the comments section below.
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