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Binance Suspends India’s Iconic Crypto Firm Wazirx’s Access To Its Digital Wallet

Feb 13, 2023

Binance Curbs Indian Wazirx’s Access To Its Digital Wallet

Binance Global has announced that it has curbed India’s leading platform, Wazirx’s, access to its digital wallet service.

The announcement, which was made public on Friday, suggested that Wazirx would no longer avail services of Binance wallet.

The announcement further noted that since Wazirx’s access to the wallet has been restricted, Binance would not be responsible for funds belonging to the users of Wazirx.

Binance also said that the control of customers’ funds is now in the hands of Wazirx. It further clarified that Binance is under no obligation towards Wazirx or any of Wazirx’s customers with respect to its wallet service.

Background of the Suspension of Wallet Service

Binance explained that its crypto wallet services were originally obtained by Zanmai Labs which was the operator of Wazirx.

It further explained that since Binance has terminated its contract with Labs, therefore, Zanmai can no longer avail of its wallet services.

When Binance had decided to part in separate ways with Zanmai, the latter was duly informed to withdraw the funds immediately.

Binance noted that since Wazirx was being operated by Zanmai, Zanmai would have asked Wazirx to inform its customers.

It seems as if a large number of Wazirx’s customers have not yet withdrawn their funds lying in the wallets provided by Binance.

Dispute Not Directly Linked With Wazirx

As per the news reports, it was reported that the original dispute had been developed between Binance and Zanmai Indian platform Wazirx. On the other hand, Zanmai had nothing to do with the dispute between the two.

Disputes arose when Wazirx and Binance entered into an ongoing public debate in which the relationship between the two platforms was under discussion.

Binance warned Wazirx to stop its operator (i.e. Zanmai Labs) from making false and misguiding claims. Zanmai Labs had earlier claimed that Binance was interfering in the operations of Wazirx and usurping its right to operate.

During the public debate, Binance claimed that its name and reputation have been defamed and lowered in the eyes of the general public.

Binance denied interference in the operations on the ground that there was a contractual commitment between Binance and Wazirx.

It was further clarified by Binance to the public that Binance was only allowing users of its crypto wallet service. Binance told that the wallet service was provided at the specific request of Zanmai under a legally binding agreement.

Binance informed that an ample opportunity in writing was offered to Zanmai on 26th January 2023 to retract its false statement. However, Zanmai failed to retract its false and bogus claims.

Resultantly, Binance was left with no choice but to terminate its service contract with Zanmai Labs, told Binance.

Deadline For Withdrawal of Funds

Binance had given 3rd February 2023 as the final deadline to Zanmai for the withdrawal of Wazirx’s customers’ funds.

In case Zanmai or Wazirx fails in withdrawing funds before the deadline’s expiry, then the funds would be lost and belong to Binance.

On the other hand, Changpeng Zhao i.e. the CEO of Binance Global commented that India is no longer a crypto-friendly country.

He further suggested that India’s regulatory policies are not such which are suitable or beneficial for the business model of Binance.

By looking at the statements of Binance’s CEO, it seems as if Binance would be lifting its complete business from India.

India’s Iconic Firm Is In Crisis

Wazirx is undoubtedly the biggest Indian crypto trading platform offering crypto trade experience to millions of Indians.

One of the reasons why Waxirx was so successful in expanding its crypto business nationwide was its association with Binance.

In turn, Binance is a pioneer of crypto trading services which though inaugurated services with a ‘decentralized structure’ is now a fully-centralized exchange.

Binance’s decision to debar Wazirx from utilizing its digital wallet services. It would hence be a major blow to the lead Indian crypto trading platform whose business is likely to suffer irreparable loss and damage.

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