According to reports, Indian authorities are investigating Binance, a cryptocurrency exchange related to China’s ongoing money laundering case, which involved more than 10 billion rupees (134 million U.S. dollars).
Binance’s regulatory issues continue
Local media reported on Friday, citing people familiar with the matter, that India is reportedly investigating whether Binance, the global cryptocurrency exchange, played any role in China’s money laundering plan involving gaming apps.
According to the unnamed person, since the matter is still under investigation, the China Enforcement Bureau (ED), a law enforcement agency under the Ministry of Finance, has summoned Binance executives for questioning.
The case revolves around a gambling application operated by a Chinese operator. Allegedly, they have earned more than 100 crore rupees in the past 10 months. They were suspected of laundering money through Wazirx, a local cryptocurrency exchange in India, which was acquired by Binance in 2019.
In response, Binance stated in a statement:
We did not receive any subpoenas in June or July of this year. According to the information available in the public domain, the subpoena is only for Wazirx.
The exchange continued: “We work closely with regulators, law enforcement agencies and industry leaders around the world to further improve the safety and sustainability of the industry, while providing our users with the best service and protection.”
More and more regulators around the world warn Binance to conduct business within its jurisdiction without authorization. They include regulators in Malaysia, Japan, the United Kingdom, the Cayman Islands, Hong Kong, Thailand, Germany and Lithuania.
Commenting on the increasing regulatory review, Binance CEO Changpeng Zhao stated that the company is looking for a CEO with a strong compliance background, and Binance hopes to obtain a license anywhere and become a financial institution.
What do you think of India’s investigation into the warnings issued by Binance and other regulators to exchanges? Let us know in the comments section below.
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