Binance has announced that Indian crypto exchange Wazirx is no longer able to use the Binance wallet service.Wazirx operator Zanmai has until February 3 ” . to remove funds from the account used for Wazirx’s operations.” The move follows a public controversy regarding the relationship between Binance and Wazirx.
Binance ends wallet service to Wazirx
Cryptocurrency exchange Binance announced Friday that Indian crypto exchange Wazirx “can no longer use Binance’s wallet service.”
Noting that it “does not control any aspect of Wazirx users’ funds or the operations of the Wazirx exchange,” Binance explained.
We provided the wallet and related technical services to Zanmai Labs (Zanmai), the exchange’s operator, but this service is being terminated.
Zanmai has communicated its intention to withdraw funds from the associated account, but Binance noted that at the time of the announcement, the Indian company “has not fully withdrawn the assets held in the Binance wallet used for Wazirx’s operations.”
Public dispute between Binance and Wazirx
Binance’s termination of its wallet service to Zanmai followed a public debate between Binance and Wazirx regarding the nature of the relationship between the two cryptocurrency trading platforms.
“Zanmai made a series of misleading claims related to Binance’s alleged role and responsibility in the operation of the Wazirx exchange.” Binance explained and elaborated.
The false and misleading narrative presented to the public misrepresented that Binance controlled Wazirx users’ assets, user activity, and platform operations.
Binance emphasized that it merely provided the Wallet Service to Zammai “only as a technical solution for the operation of the Wazirx exchange,” and on January 26, Binance asked the Indian company to “withdraw the false publication (and continue using our services) or Wallet service or terminate their use of our service,” he said. Binance continued.
Zanmai has until February 3, 2023 (23:59 UTC) to remove funds from the account he used for Wazirx business because Zanmai refused to clarify his misleading statements.
Changpeng Zhao (CZ), CEO of Binance, recently stated that India is not a viable business opportunity for his exchange due to the country’s regulatory stance, including a hefty tax framework. Crypto exchanges are aggressively expanding their operations around the world. Binance, currently licensed in seven EU countries, recently acquired a Japanese exchange and invested in a Korean exchange.
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