Binance Severs Ties with Indian Crypto Exchange Wazirx, No Longer Offering Wallet Services

Binance has declared that Indian cryptocurrency exchange Wazirx can no longer use their wallet services. The operator of Wazirx, Zanmai, has been given until February 3 to withdraw funds from the accounts used for Wazirx operations. This has led to a public dispute between Binance and Wazirx regarding their relationship.

Binance Ceases Wallet Services for Wazirx

Cryptocurrency exchange Binance announced on Friday that Indian exchange Wazirx “can no longer use Binance wallet services.”

Stating that it “has no control over Wazirx user funds or any aspect of the operations of the Wazirx exchange,” Binance said:

We are discontinuing the wallet services we provide to the exchange operator Zanmai Labs (Zanmai).

Though Zanmai has informed the relevant accounts that it intends to withdraw funds, Binance noted at the time of its announcement that the Indian firm “has not fully withdrawn assets held in the Binance wallets it uses for trading.”

The Public Dispute Between Binance and Wazirx

Binance’s decision to terminate wallet services for Zanmai followed a public dispute between Binance and Wazirx concerning the nature of their relationship.

“Zanmai has made a number of misleading claims related to Binance’s alleged role and responsibility in the operation of the Wazirx exchange,” Binance stated, adding:

This public misrepresentation of false and misleading narratives that Binance is in control of Wazirx user activity, user assets, and platform operations.

Emphasizing that it provided Zanmai with wallet services “only as a technology solution for its Wazirx exchange operations,” Binance noted on Jan. 26 that it gave the Indian firm an ultimatum to “retract false public statements (and continue to use our services) or cancel the use of our wallet service.” Binance continued:

Since Zanmai was unable to correct their misleading statements, they have until February 3, 2021 (23.59 UTC) to withdraw funds from accounts they used for Wazirx trading.

Binance CEO Changpeng Zhao (CZ) recently said that India, due to its regulatory stance combined with a high tax framework, isn’t an option for him as a business opportunity. The crypto exchange has been expanding around the world. It recently obtained a license in seven EU countries and also made an investment in a Korean exchange.

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