• Binance has discontinued its wallet support for WazirX, an Indian cryptocurrency platform.
• A public argument sparked the end of the collaboration between the two firms on Twitter due to alleged violations of foreign exchange regulations.
• Binance emphasized that it does not own WazirX and only provides wallet and tech services to the Indian exchange.
Binance Ends Partnership with WazirX
Binance, the world’s largest crypto exchange, has stopped its wallet services for WazirX, an Indian cryptocurrency platform. This follows a public argument over who had ownership of the exchange, which was ignited after Indian authorities started looking into the exchange’s operations due to alleged violations of foreign exchange regulations.
Deadline Set by Binance
Binance has given Zanmai Labs, who manages WazirX, a deadline of Feb. 3rd, 2023 at 11:59 UTC to withdraw their untrue statements or end their partnership with Binance. Since no satisfactory reply was received from them, Binance was forced to end their association.
WazirX User Assets
A proof of reserves report revealed that 90% of user assets are stored in Binance wallets; this is represented by stablecoin USDT tied to the value of the U.S dollar worth $285 million in total user asset value at the time of reporting. Other exchanges held only $26.45 million compared to Binance’s $259.07 million holdings in user assets.
Bactionship with WazirX
Despite announcements pointing to otherwise back in 2019, Binance has stated that it does not own WazirX and only provides wallet and tech services for them as part of its partnership agreement with them.
It is clear that there is an ongoing dispute between both companies regarding ownership rights and control over operations on WazirX; however, it remains uncertain if this will be resolved soon or not as both sides have yet to reach any form of agreement thus far.