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Thursday, September 29, 2022

Why Does Binance Recommend Shifting Your Crypto From WazirX To Binance

Changpeng Zhao (CZ), CEO of cryptocurrency exchange Binance mentioned that customers who have crypto on WazirX should transfer it to Binance’s platform.

He stated in a Tweet that,

If you have funds on WazirX, you should transfer it to Binance. Simple as that. We could disable WazirX wallets on a tech level, but we can’t/won’t do that. And as much debates as we are enduring, we can’t/won’t hurt users.

This news was followed by Enforcement Directorate (ED), the law enforcement agency of India notifying that WazirX assets were frozen. WazirX has been linked to the world’s largest crypto exchange Binance. This investigation was carried out as WazirX was suspected of violation of foreign exchange regulations.

After WazirX issued a statement on Twitter about disabling the WazirX wallets, there were multiple statements from Binance CEO and WazirX founder regarding whether Binance had required WazirX. This has also intensified the conflict between Binance and WazirX.

Crypto Exchange WazirX Evaluating Its Plan Of Action

WazirX had disagreed with the allegations that ED made on a press release. The crypto exchange WazirX is currently working on their next plan of action. The Enforcement Directorate had frozen assets worth $8.15 Million (₹646.70 Million).

A spokesperson of WazirX stated,

We have been fully cooperating with the Enforcement Directorate for several days and have responded to all their queries fully and transparently, We do not agree with the allegations in the ED press release. We are evaluating our further plan of action.

Binance’s CEO was quick to issue a statement which denied that the company had acquired WazirX after almost three years after WazirX and Binance had announced the acquisition. CZ had claimed that the acquisition of WazirX was never completed,”.

Nischal Shetty, founder of WazirX has however, disagreed and stated that this the exchange was acquired by Binance.

Nischal Shetty also tweeted that Binance owns WazirX domain name, with root access to its Amazon AWS web hosting servers, hold possession of all crypto assets and also recieives the crypto profits.

Binance’s Clarification On The Tweet Posted By WazirX

Changpeng Zhao in response to the tweet by Nischal Twetty, said,

The Wazirx founding team maintained control of the operations of the platform. We (Binance) were never given data or control of users, KYC, etc.

Additionally, Zhao also emphasised,

We do NOT have control of the trading system. You just gave the AWS login, no source code, no deployment capability. You also retained access to the AWS account, source code, deploy, etc.

Series of tweet was followed by another tweet where CZ called WazirX “uncooperative”. He also mentioned that just WazirX has been uncooperative with Binance so similarly, the exchange might have been uncooperative with ED as well.

In response to ED’s investigation, Nischal Shetty tweeted that Zanmai Labs, the entity that owns WazirX “has been cooperating with ED for over 7 days and has submitted all the required data.”

Bitcoin was priced at $22,900 on the four hour chart | Source: BTCUSD on TradingView
Featured image from Forbes, chart from TradingView.com

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