The Indian Enforcement Directorate (ED) froze WazirX’s accounts on the Indian Crypto Exchange, causing uncertainty in the market and investors’ minds. Most Indian Crypto investors thought that this might be the beginning of the end of the crypto market in India. For one long month, the Indian crypto market was uncertain until ED announced to unfreeze all of the accounts of WazirX.
Why was it frozen?
However, there is a question that why WazirX’s accounts were frozen by India’s Enforcement Directorate (ED) in the first place. To quote a tweet of ED on 5 august 2022, “ED searches the Director of WazirX Crypto-Currency Exchange & freezes its Bank assets worth Rs 64.67 Crore for assisting accused Instant Loan APP Companies in the laundering of fraud money via purchase & transfer of virtual crypto assets.” The crypto exchange was accused of financing apps that were involved in money laundering and fraud.
This was a shocker for Indian Crypto Investors, and most of them remained suspicious of the credibility of WazirX Crypto Exchange. However, things got settled after one month-long investigation, and all the accounts were unfrozen that was a happy news headline for Indian Crypto Investors because finally, they could trade without any fear of prohibitions.
Condition of unfreezing
According to the WazirX Crypto Exchange’s official statements, they provide the investigation team with every legal document and other information. They are doing their best to cooperate with the concerned authorities on a legal framework. 16 different fintech loan companies are under investigation by India’s Enforcement Directorate (ED), and most of them have supplicated their services from the exchange.
The Crypto Exchange further said that the company would not allow illegal work to be done through it. It will always follow the rules and regulations of the local laws. Most accounts were blocked to ensure the exchange’s safety and smooth process. These accounts were targeted by India’s Enforcement Directorate (ED) in 2020-21, and most of them are now out of the WazirX platform.
It further stressed that the exchange is never used for money laundering. Nevertheless, the exchange confirmed that some accounts have used this exchange and given every detail to concerned authorities. Following these legal works, the accounts of Crypto Exchange WazirX have been unfreezing; however, the investigation is still going on.
Effect of this decision on the Indian Crypto Market
India is one of the few countries where the crypto market has seen enormous growth during the last few years. Indian Crypto Investors are one of the top investors in the world. Similarly, Crypto Exchange WazirX is a top-ranked crypto exchange in India. Freezing all its accounts and transactions affected Indian Crypto Investors as well as the overall crypto market in India. This was a worrisome situation for Indian Crypto Investors. Luckily, WazirX provided every necessary detail to India’s Enforcement Directorate (ED), due to which its accounts are unfrozen.
This will surely affect the overall crypto market in India. In a market full of uncertainty, everyone cautions about the investment. However, when things are settled between high authorities, you do not see any threat to the market in the upcoming days. Every investor, whether that is bigger or small, would start investing, due to which the chart of many coins will see an upward trend.
Final thoughts
So to conclude, the news is surely happy news for Indian Crypto Investors. They can now use one of the top-ranked Crypto exchange WazirX, without fearing losing their investment. When many people invest in the market, everyone will take benefit from it. It is good news that both government and crypto exchange is now on the same page about not allowing illegal activities on these exchanges.
Just like the Crypto Exchange WazirX, other cryptos exchanges should also follow suit in order to have the smooth running of the crypto business in India.
