Enforcement Directorate (ED) the body that keeps a check on the regulatory function in India has recently issued a notice to India’s largest crypto exchange WazirX while taking their perspective on their recent violation of India’s Foreign Exchange Management Act (FEMA), while the crypto regulations move to next stage in India.
A Notice seeking authenticity of crypto withdrawal from one crypto wallet to another has been a major hurdle for Indian crypto exchanges. Previously, crypto exchanges in India had already suffered due to the lack of cooperation with the banks while providing their services, and now seeing the current notification which would further aggravate the problems of crypto service providers within the country.
WazirX has received a recent notice from ED just a month after which the regulatory firm issued another notice addressing the cryptocurrency exchange in connection with a money-laundering scandal that involved a Chinese betting racket.
ED notification for WazirX is a big challenge for the crypto ecosystem as a whole as it questions the legitimacy of transferring crypto from one crypto wallet to another.
While during the Earlier banking ban, the regulatory firm only had issues with bank withdrawals, but with the current announcement, it puts the entire crypto trading ecosystem at risk.
India has faced a lot of irregularities in there regulatory phase, with the rumours of a crypto bill that was to be presented in the upcoming parliament session but there was no mention of a crypto related bill in the list, while later there were reports from various sources stating of an additional 18% tax on trades offered to Indian customers by foreign exchanges.
Amidst all these happenings many countries around the world are now actively working to fully control the crypto market. While some countries have introduced crypto under existing monetary laws, some are developing new laws. Indians have high hopes for the Supreme Court’s March 2020 Supreme Court ruling to lift the banking ban imposed by the Reserve Bank of India. The ED notice for WazirX will help prevent the progress of the developing Indian crypto ecosystem despite the uncertainties about the regulations.