Users will continue to be able to deposit and withdraw funds using the standard deposit and withdrawal procedures between Binance and WazirX, according to a Binance executive.
On Monday, the world’s largest cryptocurrency exchange, Binance, which disowned the Nischal Shetty-run cryptocurrency platform WazirX, announced that it is removing the off-chain channel for fund transfers between WazirX and Binance.
Patrick Hillmann, chief communications officer for Binance, said in a statement that the platforms will no longer support off-chain fund transfers between WazirX Exchange and Binance using the “Login with Binance” option.
“Users will continue to be able to deposit and withdraw balances using the standard deposit and withdrawal procedures between Binance and WazirX, “he said.
Changpeng Zhao, Founder and CEO of Binance, stated last week, following Enforcement Directorate (ED) raids on WazirX’s parent company Zanmai Lab, that the company does not own any equity in Zanmai Labs, the entity operating WazirX and founded by the original founders.
Binance ceases off-chain fund transfers with WazirX
The Enforcement Directorate (ED) conducted a search of the director of the cryptocurrency exchange WazirX and froze its bank assets worth Rs 64.67 crore “for assisting accused instant loan app companies in money laundering via the purchase and transfer of virtual crypto assets.”
Hillmann stated that the recent regulatory action taken against Zanmai Labs was a result of this: “Concerning their operations of the WazirX Exchange, it has come to our attention that some users were led to believe that Binance managed funds deposited in WazirX. This is not the situation “.
Binance will continue to support Indian regulators in ongoing WazirX-related matters.
Hillmann stated, “Binance believes in maintaining an open dialogue with regulators, policymakers, and the law enforcement community as we collectively seek to establish a global regulatory framework for the industry.”
WazirX is the largest cryptocurrency exchange in India, and its trading volume in 2021 exceeded $43 billion.
Last week, Shetty, co-founder of WazirX, refuted Binance’s claims in a series of tweets.
Additional WazirX facts: Binance owns the WazirX domain name, has root access to AWS servers, possesses all crypto assets, and earns all crypto profits. “Not to be confused with WazirX,” he had tweeted previously.
Binance announced on November 21, 2019, that it had “acquired” WazirX.
“This transaction could not be finalized. Binance has never owned any shares of Zanmai Labs, the company that operates WazirX “in accordance with Zhao
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