Nischal Shetty: Exchange WazirX began blocking accounts 20% more often

The CEO of India’s largest crypto exchange, WazirX, said that from October 2021 to March 2022, the number of user account lockouts increased by 19%.

Nischal Shetty informedthat in six months the platform blocked 17,218 user accounts, while from April to September 2021, 14,469 accounts were frozen.

73% of blocked accounts were frozen at the request of customers, and 27% by the legal department of WazirX in connection with investigations initiated by the prosecutor’s office or due to disputes regarding payments. About 40% of the frozen accounts turned out to be associated with cryptocurrency pyramids or fraudulent transactions carried out using social engineering methods.

“The vast majority of fraudulent cases are due to misinformation and lack of user awareness about cryptocurrencies. This indicates the need to implement large-scale training programs to protect the interests of traders and investors. We are implementing effective methods for checking suspicious transactions,” the head of WazirX assured.

Over the past two years, the exchange has received 952 inquiries from law enforcement in India, plus 71 inquiries from foreign law enforcement. All requests related to crimes related to digital assets, and the exchange provided the necessary information to the departments.

WazirX Communications Director Aritra Sarkhel says the marketplace is “seeking to strengthen India’s cryptocurrency landscape” by partnering with educational institutions. The exchange conducts training seminars for law enforcement and government agencies across the country to make it easier for them to identify cases of fraud with cryptoassets.

A few months ago, Nishal Shetty urged local authorities not to raise the tax on cryptocurrencies, otherwise this would hinder the development of the industry in India and would contribute to the outflow of specialists to other countries.