Between April – September 2021, WazirX, the renowned Indian crypto exchange, received 377 information requests from Indian law enforcement groups and agencies. Every month, the company releases a transparency report, and the one released in October said that the company has been compliant with all the requests.
Since April 2021, 14,469 accounts have been locked on the platform, with 90% of them including user disputes and requests for information from law enforcement agencies.
The report released by the company highlights several important aspects of cryptocurrency investments, such as investor education and know-your-customer (KYC) compliance. The significance of the report can’t be downplayed, as it comes at a time when India’s government is quite openly talking about regulating cryptocurrency investments and use. India is seeing growing adoption of cryptocurrencies, and the country’s government has started to take notice of this.
WazirX and other Indian crypto exchanges have been pushing for self-regulation by partnering up with different advocacy groups. For example, Blockchain and Crypto Assets Council (BACC) of the Internet and Mobile Association of India (IAMAI) is one of the groups that WazirX has partnered up with.
In the transparency report, WazirX also stated that it doesn’t consider any cryptocurrency to be a substitute for fiat currencies like the Indian rupee or the US dollar. In the report, it referred to cryptocurrencies as a decentralized network-based utility and an asset class. The report also focused on important aspects of the crypto industry such as crypto education, investor protection, putting security mechanisms into place for monitoring illegal activities, and why transparency is of importance.