Crypto bourses block fishy coin withdrawals
transactions.
Withdrawal and transfer of cryptocurrencies from wallet of an exchange to a private purse can be an easy route to launder money or perpetrate fraud on investors lured by ponzi schemes in the wake of a bull run. All withdrawal requests are being scanned to question the source of money and details of counterparties controlling the external wallets where the cryptos would be moved.
«There is no law under which exchanges can ban withdrawals,» said a senior official of an exchange.
Compliance Frameworks
«Exchanges have to save their skin. If there is fraud or dubious fund transfers, the Enforcement Directorate would come after them and freeze their bank accounts. So exchanges are adding new layers that make withdrawals tougher. Stalling suspicious withdrawals is essentially to mitigate that risk,» said the official.
Did you Know?
The world of cryptocurrencies is very dynamic. Prices can go up or down in a matter of seconds. Thus, having reliable answers to such questions is crucial for investors.
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The power to freely withdraw coins from investors' registered wallets with exchanges can be misused in different ways.
For instance, now with the market going up after a lacklustre 2023, someone can float a
