Binance Says Indian Crypto Exchange Wazirx Can No Longer Use Its Wallet Services

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Binance Says Indian Crypto Exchange Wazirx Can No Longer Use Its Wallet Services

Binance has announced that Indian crypto exchange Wazirx can no longer use Binance wallet services. Zanmai, the operator of Wazirx, has until Feb. 3 “to remove the funds from the accounts that they used for Wazirx’s operations.” The move followed a public dispute regarding the relationship between Binance and Wazirx.

Binance Ends Wallet Services to Wazirx

Cryptocurrency exchange Binance said Friday that Indian crypto exchange Wazirx “can no longer use Binance wallet services.”

Noting that it “has no control over Wazirx user funds or any aspect of the Wazirx exchange’s operations,” Binance explained:

We provided wallet and related technology services to the exchange’s operator, Zanmai Labs (Zanmai), – a service we are terminating.

While Zanmai has conveyed its intention to withdraw funds from relevant accounts, Binance noted that at the time of its announcement, the Indian company “has not fully withdrawn assets held in the Binance wallets that it uses for Wazirx’s operations.”

The Public Dispute Between Binance and Wazirx

Binance’s termination of wallet services to Zanmai followed a public debate between Binance and Wazirx regarding the nature of the relationship between the two cryptocurrency trading platforms.

“Zanmai has made a series of misleading claims related to Binance’s alleged role in and responsibility for operating the Wazirx exchange,” Binance described, elaborating:

The false and misleading narrative put forth to the public misrepresented Binance as maintaining control over Wazirx users’ assets, user activity, and the platform’s operations.

Emphasizing that it merely provided wallet services to Zanmai “only as a tech solution for their operations of the Wazirx exchange,” Binance said that on Jan. 26, it offered the Indian company a choice to either “retracting the false public statements (and continuing to use our services) or terminating the use of our wallet service.” Binance continued:

Since Zanmai has refused to clarify their misleading statements, Zanmai has till 3 February 2023 (23:59 UTC) to remove the funds from the accounts that they used for Wazirx’s operations.

Binance CEO Changpeng Zhao (CZ) recently said that India is not a viable business opportunity for his exchange due to the country’s regulatory stance, including a hefty tax framework. The crypto exchange has been actively expanding its operations worldwide. Now licensed in seven EU countries, Binance recently acquired a Japanese exchange and invested in a Korean exchange.

What do you think about Binance ending its wallet services to Indian crypto exchange Wazirx? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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