Iran drops hints about legalizing cryptocurrencies, India summons Binance for an enquiry

After El Salvador became the first country to adopt Bitcoin as a legal tender, things look brighter for Bitcoin along with other cryptocurrencies in Iran as well which has indicated about legalizing cryptocurrencies after the elections in the country.

However, not everything is great with crypto as the Asian powerhouse, India has summoned Binance to start its probe about WazirX which is accused of violating regulations as well as money laundering.

Iran to legalize cryptocurrency?

At this moment, Iran government has different things to deal with since the elections are approaching and cryptocurrency isn’t their primary focus but Hassan Rouhani, president of Iran has clarified that it wants to legalize cryptocurrencies by the end of the year. However for that purpose, people of Iran also need to re-elect this government in power as its term will end soon.

Iran is not a cryptocurrency powerhouse at the moment. It only serves as a region for Chinese mining companies due to its low energy cost which is a headache for Iranian authorities as the power consumption by mining agencies is high. In spite of that, the president plans to legalize crypto with a statement that it can cut off energy consumption to the mining centers any time it feels like.

Rouhani government has also stated that if it comes to power again after the election, it will start crypto education for everyone in the country as the popularity of crypto assets is at its peak right now and the government, companies and people prioritize it for the passive income in the country.

India summons Binance

While Iran has given positive signs towards cryptocurrency, not so good signs are coming from India as Indian government has summoned Binance as WazirX, the crypto exchange owned by Binance has been accused of breaching exchange regulations. WazirX is the largest cryptocurrency exchange in India which had gained fame in late 2019 when crypto’s popularity had surged.

The Federal Execution Directorate in India has said that the platform has not helped in clarifying doubts about violating AML, CFT, and FEMA guidelines. WazirX has also been accused of money laundering in China through illegal gambling.

Government agency Enforcement Directorate, also known as ED has said that WazirX allows its users to transfer funds without proper documentation which makes it a hub for illegal transactions.

However, the company CEO Nischal Shetty has denied such claims by saying that the company follows legal KYC process which ensures it has the record of every single user and it is ready to co-operate with ED.

These are not so good signs for Crypto community in India which has always given mixed signals about the future of cryptocurrency in the country in the past. Government may take an anti crypto stance if it finds WazirX to be guilty of the charges it has been accused of.

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