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Why Binen and Wazirx?
India’s Financial Intelligence Unit (FIU-in) is investigating the Global Cryptocurrency Exchange Benns and Indian Exchange Wazirx, focusing on potential flaws in cross-border digital asset transfer.
The investigation is inspired by concerns about the transaction of the irregular wallet connected to Pakistan’s accounts. Officials are particularly concerned about activities near sensitive acts such as Jammu and Kashmir, where such transfer can be used for illegal money or money laundering. They are also investigating the funds sent from India for the address outside the country.
Although no director has been found to be a criminal relationship so far, the lack of transparency in crypto walllets has led FIU-people and Enforcement Director (ED) to monitor blockchain activities. Investigations began due to unusual cryptocurrency transactions, especially wallet-to-wallet transfer.
These transfer, often make through private addresses that are not connected to exchanges, are difficult to track and do not follow standard reporting rules. Conflicts about the financing of terrorism and separatist activities in Indian territory Kashmir have given a more important tone to the investigation.
Investigation has been more important due to geopolitical consumption. Officials noticed the crypto activity between Pakistan -associated accounts and recipients have increased these transactions the national security concepts of the instability of the region and the history of Illugal financial activities.
Do you know In 2019, the CEO of the Quadrigax Crypto Exchange died in India, reaching the customer fund to $ 190 million. Investigators later revealed that Cotton had run Quadiga as a Ponzi-style fraud, using customer funds for personal trade and luxury expenses, claiming that they were safely stored in the capital walls after claiming that they were safely stored.
Binance and Wazirx: previous regulatory and security issues in India
Binance and Wazirx are facing regulatory investigations as India strengthens its monitoring of cryptocurrency exchanges, thanks to concerns about potential money laundering and financing alformal activities through digital asset transfer from the border.
The world’s largest Crypto Exchange, Binens, returned to the Indian market after resolving the issues of complaint. In June 2024, it paid $ 18.9 crore (priced at $ 189 million) on July 21, 2024 for a previous violation and registered with FIU-PEOPLE in August 2024. Indian operations of binance as part of the ongoing investigation in cross-limit wallet transactions.
Wazirx is associated with preview and is widely used for cross-border-border remittances in India. The Excment was hacked by the Lazarus Group in July 2024, which stole about $ 235 million to highlight the weaknesses in its safety and to know its customer (KYC) measures. 72-Page affidavit filed
Both exchanges have been in the headlines as Indian authorities have worked to enter cryptocurrency activities which are not danger or national security.
How Crypto Regulation developed in India and Pakistan
India and Pakistan have so far taken a fast structured path towards Crypto regulation. India has adopted a careful approach, focusing on taxation and anti-man laundering (AML) measures with a framework that does not consider Crypto as a legal tender. Pakistan has moved towards establishing a regulatory authority to legalize crypto trading and to draw foreign investment and modernize its financial system.
In March 2025, Pakistan established the Pakistan Crypto Council, with Bilal bin Saqib appointment as the council chief, who would serve as his strategic advisor.
On July 8, 2025, Pakistan introduced virtual assets ordinance by constructing Pakistan Virtual Assets Regulatory Authority (PVARA) to handle licenses and oversight. PVara will act as an autonomous regulatory body. Its responsibilities will include licensing, monitoring and supervision of virtual asset services. Additionally, PVARA will ensure adherence to international standards, especially the Financial Action Task Force (FATF).
After banks wishing to support Cryptocurrency in India, 2018, the Supreme Court was seen in 2020. Rules conduct KYC checks, maintain records and report suspicious activities. Cryptocurrency profits are targeted at 30% with 1% tax in source (TDS), and the 2025 budget presented the requirement of Straketer Tax Dispeller.
Although a compressed crypto law is still pending, India is aligning with transparent and global standards to increase inspection such as Crypto-asset reporting Framework (CARF).
Do you know In April 2021, a little Turkish’s Sudden stopping trade and return. CEO Farooq Fatah fled to özer Albania, who took a hard drive with $ 2 billion in Crypto. He was later jailed for 11,196 and year in jail for fraud and other crimes.
Risk of transaction between India and Pakistan from across the border
The cross-border cryptocurrency transfer rules between India and Pakistan reduces significant risks due to lack of transparency in geopolitical stresses and crypto wallets. These factors raise concerns about ilegal financing and financial instability:
- Regulatory difference: Separate regulatory approaches produce gaps that can be exploited for illegal transactions. India’s adoption of India’s global crypto-asset reporting Framework (CARF) reflects efforts to improve comprehenses and financial monitoring.
- Oblivion Risk: Experts have warned that irregular private wallets can be used for financing terrorism. Regulators now require suspected transaction reports for crypto mixers, privacy equipment and stabblecoin, thought that regulation regulation regulation will be argued except in innovation innovation.
- India-Pakistan Tension: Oncadequental disputes, in Jammu and Kashmir, increase the investigation of crypto transactions, where the possibility of terrorism is high. The State Investigation Agency (SIA) of Jammu and Kashmir conducted a coordinated raids in Jammu, Doda and Kupwara, used a suspected network to fund Cryptocurrency to fund cross-border extremism and radical efforts.
- Rising Cybercrime: Cross-border cyber scam associated with cryptocurrency, mule accounts and telegram-based banking bots has been reported, which has increased vigilance on crypto transactions. The Financial Action Task Form (FATF) warned that the terrorists rapidly exploited the e -commerce platforms, messaging apps and cryptocurrency to finance extremist activities, citing terrorist attacks Pulwama (2019) and Gorakhnath Temple (2022).
Do you know By 2021, the rug pulls, when the exchanges founders suddenly escape with investors funds, all the crypto of scam was responsible for a shocking person (only 1% before 1%) for 37% of the scam revenue. A fewx topped that category during the same period.
Global trend in Crypto Oversite
As the governments around the world tighten the crypto rules, India and Pakistan are favorable for a new era of transparency and accountability in the digital finance ecosystem.
India’s investigation leads to widespread initiative of Benance and Wazirx. The US Department of Justice disrupted three cryptos, which include terrorist finance operations and a significant amount of digital currency associated with groups such as Hamas, Al, Kasam Brigade.
On the other hand, the US Congress has advised talent, anti-CBDC, and clarity serves to ensure regulatory clarity. The European Union staff also recognizes the possibility of using crypto for money laundering and affects field-wide licensing measures.
The efforts of investment agencies in India reflect a global tendency. States are demanding innovation with illegal flow to curb financial integrity and illegal and anti-national activities.
