Showcase Notice To Be Served By WazirX For Money Laundering

By now, you all must have read the news about Wazir X being issued a show-cause notice for crypto transactions worth Rs2790 cr. Let me apprise you of the details here.

1. The showcase notice has been issued by ED (Enforcement Directorate). This is a body that is responsible for enforcing economic laws and fights economic crimes in India.
2. A FEMA (Foreign Exchange Management Act) investigation has been probed basis the money-laundering investigation into Illegal online betting applications owned by the Chinese.
3. As a part of the investigation, it was observed that the Chinese were involved in laundering proceeds of crime worth Rs 57 crore which they apparently managed by converting INR to USDT and then transferring USDT to Binance.
4. Wazir X has been accused of allowing Crypto transactions without performing the KYC (Know Your Customer) which is strictly against the FEMA guidelines.
5. During the investigation, it has been found that users of WazirX have received cryptocurrency worth ₹880 crores from Binance accounts and transferred out cryptocurrency worth ₹1,400 crores to Binance accounts. But none of these transactions are available on the blockchain for any audit or investigation.
6. As per the tweet from WazirX CEO, they are truly compliant with all economic laws. He also mentioned that they would cooperate in the investigation and will support ED in tracing such fraudulent transactions.

Since the publication of this news, the WazirX token (WRX) price has left a negative sentiment among the holders and has led to a price fall.

 
With any such news in the market, the price of the token is bound to fall, people are scared to hold their money in such tokens and try to get an escape as soon as possible.

My take on this news

1. This is just a showcase, not a statement or proof of allegation on WazirX.
2. As per protocol, WazirX will have to prove to ED that proper documentation and KYC was performed before allowing any such transactions on their platform (which is true, it took 3 days for me to go through the KYC process). Once this is done, WazirX will be free of any such allegations.
3. The market sentiments are bound to go low following such news which means it's a pure-play buy time for such currencies.

I have placed my order on Rs 100 for now. I'm sure within a few days only it would recover and bounce back with profits.