Mired in notices and criticism for money laundering and foreign exchange rules violation, WazirX has now partnered with TRM Labs for better compliance and to prevent crypto fraud.
On June 11, the Enforcement Directorate (ED), a law enforcement agency for economic laws and fighting economic crime in India, had issued a show-cause notice to the Binance owned exchange for allegedly violating provisions of the Foreign Exchange Management Act, or FEMA, for cryptocurrency deals worth INR 2,790.74 crores.
A week later on June 18, the Narcotics Control Bureau Mumbai had asked WazirX for details about a user who allegedly has been using the exchange to carry out drug deals.
WazirX has now decided to up the ante to prevent any kind of fraud. That’s why it has sought assistance from blockchain security firm TRM labs. It may also help in building confidence with the regulatory authorities.
TRM is one of the premier blockchain security firms providing compliance and risk management services. Its arsenal includes tools for crypto wallet screening, transaction monitoring, Know-Your-VASP checks, and investigations.
“Ensuring that our operations are secure and compliant with global regulatory requirements is critical to our success; at the same time, we want to meet our customers’ expectations for fast, seamless transactions. TRM’s platform helps us achieve this balance with an AML (Anti Money Laundering) solution that’s easy for large compliance teams to use, but also underpinned by best-in-class blockchain analytics,” said Nischal Shetty, founder and CEO of WazirX.
“Forward-thinking crypto businesses like WazirX recognize that the right risk management tool is an enabler of growth. Our next-generation platform is designed for customers who need to move quickly to meet consumer demand for new assets while maintaining the highest standard of regulatory compliance and risk management.” said Esteban Castano, CEO of TRM Labs.
In May, CoinDCX, another Indian crypto exchange, partnered with a company called coinfirm which provides blockchain analytics and compliance services to comply with the recommendations of the Financial Action Task Force.