scorecardresearch

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

Users will still be able to deposit and withdraw balances via the standard withdrawal and deposit process between Binance and WazirX

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.

As per the latest development in the Binance WazirX feud, the former today clarified that it is removing the off-chain fund transfer channel between WazirX and Binance. “Effective from 2022-08-11 03:00 (UTC), Binance will cease to support off-chain fund transfers between WazirX Exchange and Binance via the “Login with Binance” option. Users will still be able to deposit and withdraw balances via the standard withdrawal and deposit process between Binance and WazirX,” Patrick Hillmann, chief communications officer, Binance, said in an official communique. 

 As per the statement, moving forward, Binance will support Indian regulators in the ongoing matters concerning WazirX. “Binance believes in keeping an open dialogue with regulators, policymakers, and the law enforcement community as we collectively seek to establish a global regulatory framework for the industry,” he 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. “It has come to our attention that some users were given to believe that funds deposited in WazirX were managed by Binance. This is not the case,” Hillman clarified. 

The relationship between Binance and WazirX turned sour after the Directorate of Enforcement (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. The public dispute has left about 15 million registered users on the platforms stranded. It is believed that Zanmai Labs run by Nischal Shetty and other founders will opt for a legal route. 

On August 5, 2022, Changpeng Zhao, CEO, Binance,  in a series of tweets distanced itself from Binance. In his tweets, he stated that Binance doesn’t own any equity in Zanmai Labs and only provides wallet services to WazirX as a technology solution. This sent shockwaves to the market especially, when Binance announced its acquisition of WazirX, in a blog post on November 21, 2019. 

Also Read: As personalised NFTs soar in India, does fraud around it

Follow us on TwitterFacebookLinkedIn

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.