Clash over ownership Issue: WazirX vs Binance

The corporate hidden clash now comes to the road , as the clash between WazirX and Binance escalates, a senior executive from the latter revealed that WazirX has been avoiding to pass on full ownership of its assets to Binance for the past two years.

WazirX currently accounts for nearly 50 percent of the Indian crypto trading volumes. A question comes on, how the investors money is safe ?

As per the source, the global cryptocurrency trading platform will not engage with WazirX in the future, especially with the ongoing Enforcement Directorate (ED) investigation. Zanmai Labs owns and operate WazirX despite us trying to claw back ownership.

According to the ED, Chinese loan lending companies that were shut down in India diverted their funds through crypto exchanges, and the maximum amount of funds was diverted to the WazirX exchange.

The cryptocurrency exchange Wazirx is under the fire, the company said that, it has no affiliation with any users who indulge in illicit activities. This comes after the ED on Friday said it has seized Rs 65 crore after it found evidence against the company while investigating non-banking financial companies (NBFC) and their fintech partners indulging in predatory lending practices.

Sources said, it was allegedly being involved in assisting illegal Chinese lending apps make cross-border payments using crypto tokens through its network, violating Foreign Exchange Management Act (FEMA).

Binance CEO Changpeng Zhao said that it does not own WazirX, and “only provides wallet services for WazirX as a tech solution.”

As per WazirX, it has a no-tolerance policy toward any illegal activities. “Users agree in the User Agreement to use WazirX in accordance with applicable law. Users are signed up on WazirX only after they complete the KYC process, including submitting proof of address and identity. Our KYC/AML terms and processes are available on the platform publicly,” the crypto exchange said, adding that it “does not accept any cash transactions.”

After the news gets spread over all the media and social media platforms, customers jump to transfer their funds from WazirX to Binance, on Monday, Binance disabled off chain transaction this created a panic amongst users ,without paying any gas fee.

Going forward, Binance will make headways into India, which it sees as a long-term opportunity and a talent recruiting hub.

WazirX believes that there seems to be a major misunderstanding about off-chain transactions. “Off-chain transactions between WazirX and Binance can only be done by a user between his/her/its own account on the two platforms.