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

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Binance has announced that Indian crypto exchange Wazirx can no longer use Binance wallet services. Zanmai, the operator of Wazirx, has until February 3 “to withdraw funds from the accounts they used for Wazirx operations.” This decision follows a public dispute regarding the relationship between Binance and Wazirx.

Binance Ends Wallet Services for Wazirx

Cryptocurrency exchange Binance said on 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 Wazirx exchange operations,” Binance explained:

We have provided wallet and related technology services to the operator of the exchange, Zanmai Labs (Zanmai), a service which we are terminating.

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

The public dispute between Binance and Wazirx

Binance’s termination of wallet services at Zanmai follows 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 and liability in operating the Wazirx exchange,” Binance described, adding:

The false and misleading narrative presented to the public misrepresented Binance as retaining control over Wazirx user assets, user activity, and platform operations.

Emphasizing that it was simply providing wallet services to Zanmai “solely as a technology solution for their operations on the Wazirx exchange”, Binance said that on January 26, it offered the Indian company the choice to “retract the public misrepresentation (and to continue to use our services) or terminate the use of our wallet service.” Binance continued:

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

Binance CEO Changpeng Zhao (CZ) recently stated that India is not a viable business opportunity for his exchange due to the country’s regulatory stance, including a burdensome tax framework. The crypto exchange has actively expanded 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 of Binance ending its wallet services at Indian crypto exchange Wazirx? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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