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As The ED Investigates exchanges India’s FM warns crypto investors

Hello friends today we will talking about crypto investors. The Indian ED (Enforcement Directorate) has recently cracked down on cryptocurrency exchanges for violating inadequate anti-money laundering regulations, among other things.

Vauld’s assets, estimated to be worth $46 million, and WazirX’s assets, estimated to be worth $8 million, have lately been frozen. Nirmala Sitharaman, India’s FM, has so advised cryptocurrency investors to exercise caution when using these platforms.

Since they are both being looked at, you never know which one will be found out.

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Investors need to be cautious

If you now use Indian cryptocurrency exchanges, it’s time to switch to a bigger, safer global platform. Binance, for instance, might be a wise choice. It is crucial to remember that every centralised exchange has some risk, although that risk decreases as a platform grows in size.

Regarding this and the existing state of Indian crypto exchanges, India’s FM issued a warning to investors in cryptocurrencies. The authorities have already advised everyone that cryptocurrencies are not legal tender, she continued. Therefore, it is crucial to proceed with prudence in this regard.

Additionally, Nirmala Sitharaman stated that a new crypto law would be introduced soon. I can tell from what she said that it won’t likely be good for the industry.

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Vauld and WazirX

In addition to the upheaval previously experienced by Vauld, their bank assets, totaling $46 million, have also been blocked. The exchange issued a statement apologising for the uproar and clarifying that they rigorously adhere to KYC standards.

Additionally, they sent every document that ED required. They further clarified that the charges and investigations involving money laundering only concerned one user of their site. They are completely opposed to having their bank accounts frozen.

Similar circumstances apply to WazirX, whose $8 million in assets have been frozen by the ED. Additionally, CZ Zhao, CEO of Binance, said during a Twitter exchange that WazirX was never ever bought. Investors who had full faith in WazirX due to Binance’s support were similarly shocked by this. All of these occurrences indicate that it is not prudent to have entire faith in centralised exchanges. And utilising a hardware wallet is the ideal choice if you have a lot of cryptocurrency holdings.

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