Binance, the world's largest cryptocurrency exchange headquartered in Cayman Islands, is being investigated by Indian authorities in connection with a money laundering case, according to a report on July 30.
Binance executives were summoned by the Enforcement Directorate as part of its ongoing investigation into betting apps and WazirX, reported Bloomberg.
Betting apps run by Chinese operators that collected over $134 million over the past 10 months are being probed for allegedly laundering the money through WazirX, which was bought by Binance in 2019. WazirX is already under investigation by the ED over the flouting of rules related to foreign exchange.
Binance has been facing regulatory pressure from across the globe. The crypto company has been registered in the Cayman Islands, a known tax haven, without any corporate headquarters.
ED has found that Binance wasn't collecting necessary KYC paperwork from clients for some transactions and it didn’t collect information detailed by the Financial Action Task Force (FATF) for virtual currencies, sources told Bloomberg.
The company has recently announced that it would be ending its futures and derivatives products across Europe due to regulatory pressure.
“With immediate effect, users from these countries will not be able to open new futures or derivatives products accounts. With effect from a later date to be announced in a further notice, users from these countries will have 90 days to close their open positions," the company stated.
At the same time, Malaysia became the latest country to fully halt Binance operations within its borders. Meanwhile, Japan, Canada, Italy, the UK, and the US have either clamped down on the crypto exchange or halted its activities.
Binance CEO, Changpeng ‘CG’ Zhao, had recently said that the company was working towards becoming a fully regulated financial institution. He had said that he would be willing to step down in order to allow someone else with more regulatory experience to lead the company.