India is investigating the Binance exchange in a money laundering case

The regulatory difficulties of the Binance exchange continue

India is reportedly investigating largest cryptocurrency exchange Binance, because probably played a role in China’s money laundering scheme involving betting applications, local media citing people familiar with the matter, who asked not to be identified because the case was still under investigation.

The Regional Directorate for Law Enforcement (ED), a law enforcement agency under the Ministry of Finance, summoned Binance’s management for questioning.

The case revolves around betting applications operated by Chinese operators. They have reportedly earned more than 10 billion rupees in the last 10 months. They were suspected of laundering part of the money through the local Indian crypto exchange Wazirx, which was bought by Binance in 2019.

In response Binance stated:

“We did not receive any summons in June or July of this year. According to the available information, the summons was directed only to Wazirx. “

The exchange continued:

“We work closely with regulators, law enforcement and industry leaders around the world to increase the safety and sustainability of the industry while providing our users with the best services and protection.”

A growing number of regulators around the world have already warned Binance against operating in their jurisdictions without permission. These include regulators in Malaysia, Japan, the United Kingdom, Cayman Islands, Hong Kong, Thailand, Germany and Lithuania.

Commenting on the growing regulatory oversight, Binpe’s CEO, Changpeng Zhao, said the company was looking for a CEO with a strong awareness of new regulations and experience in complying with them, because Binance wants to be licensed everywhere and wants to become a financial institution.