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Top 10 Crypto Exchanges That Are Under Investigation Right Now

Financial crime is one thing that is unavoidable in the financial space, especially in the crypto ecosystem where anonymity and decentralized methods of operation are the foundation. 

Recently, many Indian crypto exchanges are caught on the web by India’s Enforcement Directorate as they are being investigated for money laundering cases while some are yet to be investigated.

It was alleged by the Economic Times report that these crypto exchanges had assisted foreign firms to launder money through crypto.

This development is a great cause of concern for many crypto investors whose assets are managed by these exchanges and also for others who held their reputation on a high pedestal.

Do you want to know the exchanges that may be battling sanctions from the Enforcement Directorate of India? 

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This article will discuss the ten crypto exchanges that may be under this investigation.

How does Money Laundering Through Crypto Occur?

Before we delve into discussing some ways criminals can launder money through cryptocurrency, let’s talk about the meaning of money laundering itself.

According to Investopedia, money laundering is the illegal process of making large amounts of money generated by criminal activity, such as drug trafficking or terrorist funding, appear to have come from a legitimate source. 

In this context, criminals use cryptocurrencies to change the source of their illegal money.

However, there are some common strategies that money launderers apply to disguise the source of money.

The most common thing they do is to buy cryptocurrencies with illicit money on crypto exchanges and sell them later to appear like legal money coming from a crypto exchange.

More transactions add more blocks which increases the volume of information that needs to be scanned to find suspicious transactions. However, this is traceable though it is only possible with the necessary knowledge and computer power, making it very time-consuming. 

Again, some money launderers choose not to sell the crypto for ‘clean’ money after buying them, they rather transfer the money through different wallets, making it very hard to spot the illicit funds.

Some also send a particular cryptocurrency to exchange and convert it into another cryptocurrency and transfer it to a different wallet, especially one where the provider does not require KYC verification. All these add more blocks to the transaction which makes it very difficult to spot illicit money.

10 Crypto Exchanges That Are Under Investigation Right Now

1. BuyUcoin:

BuyUcoin is a good cryptocurrency exchange platform that has impressed many users due to its many exciting features such as a permanent free wallet, real-time spot trading, cashback and commission on every referral.

The exchange platform can be used to buy, sell and store a variety of cryptocurrencies like Bitcoin, Ethereum, Polkadot and Ripple.

There’s a high possibility that this exchange will be investigated by the Enforcement Directorate of India.

2. WazirX:

WazirX is a big crypto exchange in India and one can say that its reputation precedes it. With the high level of security and speed credited to the crypto exchange, It is one of the fastest growing cryptocurrency exchanges or even the fastest in India. On the platform, users are availed of a large variety of cryptocurrencies of their choice to buy from, ranging from Bitcoin, Litecoin, Ethereum, Dogecoin etc.

However, everyone seemed to be puzzled by the recent Enforcement Directorate Investigation on money laundering linked to the exchange. Could the exchange be guilty of the allegations against them? 

3. Zebpay:

Zebpay is not new in India as it is one of the oldest cryptocurrency exchanges in India. It’s very easy to sign up for and use. All a user needs to do is to provide his KYC and quickly sign up. 

Even though this exchange has built a good reputation in India, considering the wave of events in India, the Enforcement Directorate will likely investigate Zebpay.

4. Krypto:

This crypto exchange is quite popular and reputable in India and beyond. The exchange platform is imbued with some special features that make it appealing to many. Among these features are greater speed of transaction, great flexibility and a very unique user interface.

Despite having these qualities, this crypto exchange is on the list of the exchanges to be investigated by the Enforcement Directorate of India.

5. Bitbns:

This crypto exchange is also amongst the best crypto exchanges in India. It has evolved into a big crypto exchange that is preferred by most Indians with over 100 cryptocurrencies listed on the platform.

Nonetheless, as this period seems not to be a good one for Indian crypto exchanges, Bitbns may undergo some investigation by the Enforcement Directorate.

6. Unocoin:

Unocoin is allegedly the first crypto and blockchain company in India. The exchange has over one million active users, so even though there isn’t a hundred percent certainty that the crypto exchange will be investigated by the Enforcement Directorate, there’s a chance that it may happen. 

7. CoinDCX:

The evolution of CoinDCX into one of the most secure and versatile trading cryptocurrency exchanges in India is admirable. The security protocol is one feature of the platform that can never be overemphasized. Why?

Every user has a verification process without which it is impossible to trade on the exchange. However, despite all these, the crypto exchange may be on the blacklist of the Enforcement Directorate investigation.

8. Colodax:

Every crypto enthusiast is familiar with the almighty Colodax. One admirable thing about this platform is its innovative prowess. The platform has transitioned into one of the best in India through some features like high security, a custom-built trading engine, regular security audits, real-time order books and a seamless trading experience. All these features have made this exchange the favourite exchange of many and it will be a very stressful thing for them to go through the tiresome Enforcement Directorate investigation.

9. CoinSwitch Kuber:

CoinSwitch Kuber intends to set the pace for democratization of cryptocurrency investment and thus, already won the heart of millions of global crypto investors. The level of fame this crypto exchange had attained within a short time is incredible.

The reports about the Enforcement Directorate’s investigation of the exchange may as well cripple all the reputation It had struggled to build over the years.

10. Giottus:

This is the last among them. This cryptocurrency trading exchange guarantees the users many exciting offers ranging from a seamless trading interface, effective KYC verification system, state-of-the-art security technology, cold wallet insurance, high liquidity, multi-lingual support and many others.

We are hopeful that this exchange will not be investigated by the ongoing Enforcement Directorate investigation about money laundering.

Conclusion

Money laundering is a serious financial crime in India and the global economy at large. Not all the above-mentioned crypto exchanges may be subjected to the ongoing investigation by the Enforcement Directorate but there’s no clear chance of survival for any crypto exchange that may be found guilty of these allegations. 

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