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Indian crypto exchange WazirX received 337 information requests from Govt agencies involving criminal cases

WazirX, Indian crypto exchange has released its first transparency report, which now makes them the first amongst cryptocurrency exchanges to take the step. The report gives a detailed information about how India’s most popular crypto exchange deals with financial compliance and law enforcement. 

From the total 377 information requests received from govt law enforcement agencies, 38 came from foreign law enforcement agencies & 339 came from Indian agencies, all the requests received were related to criminal cases including fraud, kidnapping and narcotics and also locked 14,469 accounts during the same period, 90% of these were from user requests.

The source of the info came from which released the much awaited news and the report came amidst questions regarding the legal status of cryptocurrencies and platforms in the country. 

In 2018, the RBI had issued circular instructing banks not to provide banking services for customers dealing with cryptocurrencies. In a 2020 judgement, the Supreme Court overturned the circular. The court noted that the RBI cannot impose restrictions on cryptocurrencies when a legislative ban was absent. 

The RBI has also asked banks to continue due diligence procedures on cryptocurrency traders concerning money laundering and terrorist activities. But the Indian government continues to give mixed signals about cryptocurrencies.

Finance Minister Nirmala Sitharaman did say that there won’t be a total ban on the use of cryptocurrencies. On the sidelines, the Centre plans on introducing Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.

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