No affiliation to users ED appears to be investigating’, clears Zanmai Labs owner of WazirX

KYC details are available for all off-chain transfers as well. Off-chain withdrawals also cannot happen if the accounts are not KYCed,” the report added.

The move is on the back of recent regulatory action taken against Zanmai Labs Pvt Ltd, in relation to their operations of the WazirX Exchange.
The move is on the back of recent regulatory action taken against Zanmai Labs Pvt Ltd, in relation to their operations of the WazirX Exchange.

Amid the turmoil with the Binance WazirX, Zanmai Labs which is co-operated by both mentioned companies clarified that the Directorate of Enforcement (ED) appears to be investigating the transactions of certain users and Zanmai Labs has “no affiliation to such users and is unaware about the purpose of their transactions.” 

As per the official statement,  Zanmai Labs has a no-tolerance policy toward any illegal activities using WazirX and have fully cooperated with the investigation with transparency. 

“Users agree in the User Agreement to use WazirX in accordance with applicable law. Users are signed up on WazirX only after they complete the know your customer (KYC) process, including submitting proof of address and identity. Our KYC, AML terms, and processes are available on the platform publicly. For every transaction, we are able to produce the KYC details of the relevant user. We do not accept any cash transactions.”

The statement, moving forward read, Zanmai Labs is in the position of any other intermediary whose platform may have been misused. “There seems to be a major misunderstanding about off-chain transactions between WazirX and Binance,” it added. The move is on the back of recent regulatory action taken against Zanmai Labs Pvt Ltd, in relation to their operations of the WazirX Exchange. “Off-chain transactions between WazirX and Binance can only be done by a user between his/her/their own account on the two platforms. Hence, KYC details are available for all off-chain transfers as well. Off-chain withdrawals also cannot happen if the accounts are not KYCed,” the report added.

Earlier, Binance severed all financial ties with WazirX after the ED froze bank balances to the tune of Rs 64.67 crore of the directors of Zanmai Lab Private Limited, which owns the popular cryptocurrency exchange WazirX. Thus, the ED has the authority to freeze all of WazirX’s assets and impose a broad ban on all kinds of trading and transactions on the WazirX and Zanmai platforms.

Changpeng Zhao, CEO, Binance, made it clear via tweets that his company has no equity in Zanmai Labs and simply offers WazirX wallet services as a technical aid.

Also Read: Binance clears its position; removes off-chain fund transfer with WazirX

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