An update regarding the cryptocurrency exchange was released on Monday, and it indicated that the Enforcement Directorate (ED) had taken the step as a result of active cooperation from the WazirX team. This is without a doubt the most recent good crypto news to come out of India.

Cooperation between India's WazirX and the AML agency

In August, Invezz announced that Indian authorities had attempted to seize the exchange's accounts and assets as part of their investigation into a money laundering conspiracy involving sixteen other financial technology businesses and loan apps.

WazirX has been criticized by the ED for failing to comply with investigation requests for transaction details and documentation relating to alleged money launderers and the organizations they controlled.

However, the cryptocurrency exchange states in a blog update that it has cooperated with the authorities and given the relevant information linked to the firms. Some of the companies are shown to have utilized WazirX, as ED alleged, therefore this proves that the exchange did disclose the information.

An excerpt from today's announcement reads as follows:

"The ED has unfrozen the bank accounts of WazirX as a result of the active cooperation offered by WazirX and active Anti-money laundering (AML) checks that led to the banning of suspect accounts," the ED said in a statement. WazirX is now in a position to carry on with business as normal regarding its banking operations.

When the accounts of WazirX were frozen by the ED, the cryptocurrency exchange lost access to assets with a total value of about 646 million rupees, which was equivalent to around $8.16 million or £6.75 million at the time. The watchdog claimed that platforms suspected of engaging in money laundering had utilized the cryptocurrency platform to launder about 570 million rupees, which is equivalent to approximately $7.16 million or £6.14 million.

WazirX has reiterated that it does not have any link with the platforms while the inquiry into the actions of the organizations that were brought to light by the ED continues. In point of fact, the Indian cryptocurrency exchange claims that it is exactly the same as any other platform whose services have the potential to be abused.

While this, the exchange continues to uphold a "zero-tolerance approach toward illicit activity" and is carrying out "Know Your Customer/Anti-Money Laundering checks despite not being required to do so by law."