Binance terminates wallet services to India’s WazirX

  • According to Binance, WazirX must withdraw assets from their accounts by 23:59 UTC on February 3, 2023.
  • According to Binance, Zanmai Labs, the company behind WazirX, has failed to retract its misleading public statements about their relationship.
  • Changpeng Zhao said in August 2022 that Binance never acquired WazirX and only provides wallet services to the exchange.

Binance, the world’s largest cryptocurrency exchange, has terminated its wallet service for Indian cryptocurrency exchange WazirX.

Announcements Binance It was published On Friday, February 3, 2023, it said the decision to suspend its wallet service was linked to Zanmai Labs, the company that operates WazirX. As explained in a blog post, Zanmai has made some misleading claims about its relationship with Binance.

In particular, the claim that Binance controlled WazirX’s user funds and exchange operations is a misleading narrative that Zanmai has continued to perpetuate.

Binance suspends wallet services to WazirX operator

Binance has said that all false claims have given Zanmai the opportunity to withdraw its false representations if it wishes to continue to profit from its wallet service. It’s not happening and that’s the reason for the move.

According to Binance, its relationship with Zammai is limited to providing wallet services. These are provided “as technical solutions” to help strengthen WazirX’s exchange operations, which are not unique to Zanmai, the exchange added.

Wallet services are similarly offered to other companies that leverage technology and infrastructure to run their own businesses.

On January 26, 2023, we presented Zanmai with the option of withdrawing its false public statements (and continuing to use our service) or terminating use of our wallet service. Since Zanmai refused to disclose the misleading statements, Zanmai said he has until February 3, 2023 (23:59 UTC) to remove the funds from the account used to operate WazirX. I have.,” Binance wrote.

Zanmai is reportedly ready to withdraw all WazirX assets from Binance accounts. Binance is also proposing to allow withdrawals to be extended beyond February 3. The exchange notes that the process will not affect Binance users.

Last August, Binance CEO Changpeng Zhao explained that his company announced the acquisition of WazirX in 2019, but the deal never materialized. Zhao’s comments came when the Indian government suspended WazirX’s account amid an investigation into a money laundering scheme.

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