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India’s FM warns crypto investors as the ED investigates exchanges

Recently, the ED (Enforcement Directorate) of India has been cracking down on crypto exchanges for lax AML norms, involvement in money laundering, and more. They have recently frozen Vauld’s assets worth around $46 million and WazirX’s assets worth about $8 million. So, India’s FM, Nirmala Sitharaman, warns crypto investors to be cautious of these platforms. Since they are under investigation, you never know if one or the other will go down.

Investors need to be cautious

If you are using Indian crypto exchanges, it’s time to move to a larger and safer international platform. For example, Binance would be a good option. It is important to note that there are risks involved with every centralized exchange, but the larger a platform gets, the risks get smaller.

India’s FM warned crypto investors about this and the current situation with Indian crypto exchanges. She also added that cryptocurrency is not currency, and the authorities have already warned everyone about this. So, it is important to move with caution about the same.

India's FM warns crypto investors

Nirmala Sitharaman also said that a new crypto law would soon be coming. And sensing from her words, I hardly believe it will be anything positive for the industry.

Vauld and WazirX

Vauld has already been in turmoil, and now their bank assets worth $46 million have also been frozen. The exchange made a statement clearing the ruckus and explaining that they follow KYC norms strictly. Plus, all the documents that were requested by ED were provided by them. They also cleared that the money laundering allegations and investigations involved one customer who used their platform for a while. So, they totally disagree with the freezing of their bank accounts.

WazirX is also in a similar situation, with $8 million in assets being frozen by the ED. Plus, there also has been the Twitter conversation with Binance CEO CZ Zhao, who claimed that they never really acquired WazirX. This also came as a surprise to investors who were trusting WazirX completely because of Binance’s backing. All these incidents suggest that trusting centralized exchanges completely isn’t a wise decision. And if you have a lot of crypto holdings, using a hardware wallet is the best option.

What are your thoughts as India’s FM warns crypto investors due to the current ongoing investigations? Let us know in the comments below. And, if you found our content informative, do share it with your friends.

Also Read: Celsius Network coin report shows real debt of $2.85B, unlike the claimed $1.2B.



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