bitcoin and cryptocurrency exchange Binance will no longer support off-chain fund transfers between itself and WazirX as relations between the two firms have deteriorated.
Cryptocurrency Exchange Binance Terminates Its Off-Chain Transfer Agreement With WazirX
The move, announced on Monday, will take effect on August 11. This means that WazirX and Binance users will not be able to use the off-chain funds transfer option to deposit and withdraw cryptocurrencies on the two platforms.
Off-chain transactions occur outside of a blockchain network and are executed using a mechanism similar to that used in payment platforms.
However, the on-chain deposit and withdrawal options between Binance and WazirX will continue to work.
This move by Binance comes as it continues to distance itself from WazirX, an Indian crypto exchange that it once announced to buy. After WazirX’s funds were seized by Indian authorities last week, Binance said it never completed the acquisition.
Indian Authorities Freeze WazirX Assets
On Friday, the Enforcement Directorate of India (ED), a law enforcement agency investigating financial crimes, froze bank balances of WazirX worth Rs 647 million (approximately $8 million). Indian authorities are investigating the link between the money laundering activities of Chinese credit apps that are in the digital currency lending business in India and WazirX.
Following the news of the Executive Directorate of India, there was a public debate between Binance CEO Changpeng Zhao and WazirX founder Nischal Shetty over who owns WazirX.
Zhao said that Binance does not own WazirX and has only purchased certain assets and intellectual property of WazirX. Shetty said that WazirX is owned by Binance.
Changpeng Zhao said in a statement on Twitter:
“Fact: In February of this year, we requested the handover of WazirX system source code, distribution and operations. This was rejected by WazirX. Binance does NOT have control over their systems. WazirX has not cooperated with us and does not seem to cooperate with ED either.”
Fact: we asked for transferring of WazirX system source code, deployment, operations, as recently as Feb this year. This was refused by WazirX. Binance do NOT have control on their systems.
WazirX has been uncooperative with us, and looks like uncooperative with ED as well.
— CZ 🔶 Binance (@cz_binance) August 6, 2022
*Not investment advice.
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