From Thursday, Binance Will Cease Transfer Process With WazirX
- Binance, the world’s biggest cryptocurrency exchange, has sided with Indian authorities in their recent probe into local crypto exchange WazirX.
- Additionally, the major exchange will no longer support off-chain fund transfer channel with WazirX and, hence, cut ties with the local exchange.
Binance, the biggest crypto exchange in terms of trading volume, with billions processed in a single day, recently came to light during its dispute with WazirX, a local Indian cryptocurrency exchange. It seems that the dispute might’ve caused the former to cancel support for fund transfers from the Indian exchange.
The matter started with the Directorate of Enforcement (ED), the law enforcement agency and economic intelligence agency responsible for enforcing economic laws and fighting economic crime in India, freezing the assets of the firm. Millions were frozen when the ED rained down heavily on the bank accounts of the exchange.
This caused a spark in the crypto community with users asking for answers. Binance, over the years, has promoted WazirX and claimed to be the owner of the exchange. However, as it turns out, Changpeng Zhao confirmed that the Indian exchange is not owned by the world’s biggest crypto exchange.
The turns of events led to Binance removing the off-chain fund transfer channel with WazirX and the same will be effective from Thursday 3:00 AM UTC as per a blog post from the firm. In the post, the exchange stated that it prioritizes the “protection of users and the community” and hence, is taking the step.
“As a result of the 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,”
Confirmed the blog.
However, users will still be able to withdraw and deposit balances via the standard withdrawal and deposit process between the two exchanges.
Interestingly, Indian regulators have rained down heavily on crypto exchanges and investors as well. The authorities recently introduced a 30% tax rule followed by a 1% TDS on all crypto related transactions. The Prime Minister of the nation, Narendra Modi, associated crypto with terrorist financing and money laundering.
The ED is also investing if WazirX has helped firms launder money and proceeds of crime. The local exchange admitted to not having any records of transactions prior to July 2020.
“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,”
said the leading exchange.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
