Indian crypto exchange WazirX released its sixth transparency report on Tuesday, April 23. The report highlights what the company saw over the past five months between October 2023 and March 2024. Among the details shared, WazirX claimed that it received a total of 1,700 requests from law enforcement agencies and all these queries were resolved by the exchange with an accuracy rate of 100 percent.
“WazirX diligently coordinated with Indian and foreign law enforcement agencies and assisted them in identifying suspicious transactions, suspected fraud and identity theft. Additionally, with the help of third-party transaction monitoring tools, WazirX took preventive action against transactions that appeared complex or outside the normal process,” The report said,
According to the exchange, it recorded a turnaround time of 22 minutes for the first cut replies to law enforcement requests. The details come out at a time when India is making stringent efforts to increase its surveillance on crypto-related industry players as well as transactions. India’s financial authorities are keeping a close eye on the crypto exchanges operating in the country to ensure that none of them are unlicensed service providers and to prevent exploiters from processing illegal crypto transactions for activities like money laundering. No one is being used for this.
It is noteworthy that despite India’s increasing scrutiny on the crypto sector, crimes and scams related to the sector have continued to emerge in the country between October 2023 and March 2024.
For example, in February this year, India’s financial watchdog, the Enforcement Directorate (ED) Allegedly A complaint has been filed against four persons accusing them of being linked to a huge crypto scam involving crores of rupees. 6,600 crores. Eight arrests were made in November 2023 Allegedly Created as part of the investigation into a crypto scam in India that defrauded 100,000 people, leading to the displacement of a collective amount of Rs. 2,500 crores.
To reduce such cases, India has brought all crypto firms under PMLA or Prevention of Money Laundering Act (PMLA). Under the anti-money laundering law, reporting entities are required to maintain KYC details of users and assist law enforcement agencies in identifying potentially suspicious users and transactions – which WazirX claims in its transparency report to do. Is following it.
“We continue to suspend or block user accounts in case of policy violations, faulty or questionable KYC, or any suspicious behavior identified by our monitoring systems,” the report said.
Meanwhile, the exchange said it saw a 217 percent increase in trading volumes and a 122 percent increase in signups between October 2023 and March 2024 compared to the period between April and September 2023. While WazirX recorded the highest number of signup rates in December 2023. It recorded its highest trading volume of over $400 million (approximately Rs 3,332 crore) in March this year.
The exchange has also added 16 new listings and 30 new trading pairs in the last five months. Additionally, the platform collaborated with other crypto firms like Taxnodes and GoSats to drive crypto use cases among India’s developer community. However, the platform did not reveal how many users it is serving so far.
In India, crypto exchanges keep releasing these transparency reports to ensure that the status of their business operations is clear. This also helps ensure public trust in the platform when engaging with crypto. This eliminates the public’s fear of falling into unfortunate situations and financial crisis after the collapse of the FTX crypto exchange in 2022.
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