Indian Consumer Forum Denies Action Against Crypto Exchange WazirX on Behalf of RBI

Reportedly, the consumer affairs agency denied taking any action against the WazirX crypto exchange based on orders from the Indian Central Bank, the Reserve Bank of India (RBI).

The Consumer Affairs Department, an Indian government body focused on protecting consumer rights and promoting fair trade, runs an awareness program titled “Jago Grahak Jago” (Awaken, Consumer, Awaken). This initiative aims to educate consumers about their rights and protection against unfair practices, ensuring that consumers are informed and vigilant.

On 15 Oct 2024, a Crypto X user representing WazirX customers affected by a hack that resulted in the loss of their funds reported that Consumer Affairs refused to take action against the WazirX exchange. In response to a complaint, the agency stated that it had received directives from the RBI to refrain from handling any services linked to cryptocurrencies.

This response indicates the Indian consumer protection body’s lack of interest in addressing issues related to crypto services. As a result, the complaint against WazirX was dismissed, causing frustration within the Indian crypto community. Many are angry that regulatory bodies collect fees from crypto companies but fail to provide adequate protection to them.

WazirX Current Status

More than three months ago, the WazirX exchange was hacked, and so far, no clear restructuring plan has been publicly announced by the WazirX leadership. However, the company plans to introduce a new restructuring proposal and seek a vote in November 2024.

Under these circumstances, the majority of WazirX customers are not optimistic about the promises or plans offered by the company’s leadership.

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