One 97 Communication, the company of Paytm’s payment services provider, has denied any link with Chinese loan merchants. The Enforcement Directorate (ED) has targeted these merchants as part of an investigation into a Chinese loan app. The ED had said on Saturday that it had raided the premises of some online payment gateways. These include Paytm, Razorpay and Cashfree.
Paytm in a regulatory filing Told, “ED has sought information about such merchants to whom we provide payment processing solutions. We would like to clarify that these merchants are separate entities and none of them is an entity of our group.” Paytm said that the ED has not directed the blocking of any merchant associated with his or his group’s entities. According to a report, the ED has seized funds worth about Rs 17 crore kept in some merchant accounts belonging to Chinese nationals. The ED conducted these raids under the Prevention of Money Laundering Act (PMLA).
China’s Alibaba Group has a stake in One97 Communication. ED recently arrested crypto exchanges CoinDCX, WazirX and CoinSwitch Kuber. notice were given. These exchanges will be investigated for money laundering and violation of Foreign Exchange Act. Apart from the ED, authorities related to the Foreign Exchange Management Act (FEMA) will also be a part of the investigation.
A CoinSwitch spokesperson told Gadgets 360, “The crypto segment is an early-stage industry and has great potential. We have received queries from various government agencies. Our attitude has always been that of transparency.” Media reports suggest that the ED wants to know how crypto exchanges work in the country. CoinDCX and WazirX both claim to comply with the laws of the country and are ready to cooperate with law enforcement agencies. The crypto segment in the country is already facing difficulties due to the volatility of the market and the implementation of new tax rules. This investigation may further reduce the trading volumes of these exchanges. From April this year, a tax of 30 per cent on profits from Virtual Digital Assets (VDA) was implemented.