Binance has announced that Indian crypto exchange Wazirx is no longer allowed to use Binance wallet services. Zanmai, the operator of Wazirx, has until February 3 “to withdraw the funds from the accounts they used for Wazirx operations.” The move followed a public spat over the relationship between Binance and Wazirx.
Binance ends wallet services to Wazirx
Cryptocurrency exchange Binance said on Friday that Indian cryptocurrency exchange Wazirx “can no longer use Binance wallet services.”
Noting that it “has no control over Wazirx user funds or any aspect of the operations of the Wazirx exchange,” Binance explained:
We provide wallet services and related technology to the operator of the exchange, Zanmai Labs (Zanmai), a service we are discontinuing.
While Zanmai has communicated its intention to withdraw funds from the relevant accounts, Binance noted that, at the time of its announcement, the Indian company “has not fully withdrawn assets held in the Binance wallets it uses for trading.” of Wazirx”.
The public dispute between Binance and Wazirx
Binance’s termination of wallet services to Zanmai followed a public debate between Binance and Wazirx about the nature of the relationship between the two cryptocurrency trading platforms.
“Zanmai has made a number of misleading claims related to Binance’s alleged role and responsibility in the operation of the Wazirx exchange,” Binance described, explaining:
The false and misleading narrative presented to the public misrepresented Binance as maintaining control over Wazirx user assets, user activity, and platform operations.
Emphasizing that it simply provided Zanmai with wallet services “only as a technology solution for its Wazirx exchange operations,” Binance said that on Jan. 26, it offered the Indian company the option to “retract false public statements (and continue to use our services) or cancel the use of our wallet service.” Binance continued:
Since Zanmai has refused to clear up their misleading statements, Zanmai has until February 3, 2023 (23:59 UTC) to withdraw the funds from the accounts they used for Wazirx trading.
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 around the world. 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 for Indian crypto exchange Wazirx? Let us know in the comments section.
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