Today its th hot news in the Indian crypto community that Indian exchnage Wazirx has received a show-cause notice from Enforcement Directorate (ED). This is the first time we have seen this kind of action happening from any govt body for crypto exchnage. In fact, in recent few months govt has softened their opinion about crypto in the country, and its a good reason to expect regulation. ![image.png](https://images.hive.blog/DQmY6BNEjcrDXUuDLsuWdSDrmDkZ2mLdwVHeWgMvyhb4kEk/image.png) [src](https://images.app.goo.gl/69cuHH2wr8pFB4g79) As of now this report exist only in the media and the exchnage has not received anything from the ED department. Exchange founder Nishcgal Shetty has confirmed it on his Twitter channel. He clearly mentioned that there is no official notice received by the exchange. He mentioned that the exchnage has been following strict norms with KYC so whatever is required will be done by them to provide the information to authorities. ![Screenshot 20210611 at 9.34.15 PM.png](https://images.hive.blog/DQmaDf4ENQ8QwfKayDauYJ42SP1gadAMDS7PKjLfMhYaW94/Screenshot%202021-06-11%20at%209.34.15%20PM.png) [src](https://twitter.com/NischalShetty/status/1403282395470520325?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Etweet) Some users got worried about their funds on wazirx exchnage after this news so he also shared that funds are safe and there will be no effect for this news. I have been using wazirx for some time and I know that this exchange is very much strict with KYC norms since they did not allow me to deposit or transact unless my kyc was verified. If someone has used their account to do some unlawful activities then exchnage will be able to tace. > During the course of the investigation, it was seen that the accused Chinese nationals had laundered proceeds of crime worth Rs 57 Crore approximately by converting the INR deposits into Crypto-currency Tether (USDT) and then transferring the same to Binance (exchange registered in Cayman Islands) Wallets based on instructions received from abroad. [src](https://indianexpress.com/article/business/companies/ed-enforcement-directorate-issues-show-cause-notice-to-wazirx-and-its-directors-nischal-shetty-sameer-hanuman-mhatre-under-fema-act-7354134/) Crypto trading is growing and its money a related thing so govt and relevant authorities keep a close eye on the big money movement and in this case, if someone has done something wrong then they should surely take the action. Globally its not the first time when we see something like this happening but in India, it has happened for the first time however I am quite sure that exchange will come out of this situation soon. Wazirx is a leading exchnage and they are the Binance subsidiary now so its expert from them to follow all govt norms. Its time to see how exchnage deal with the situation when they receive an official notice in the case and its an opportunity for them to set an example. ** ** Thank you so much.