WazirX v/s Binance, Impacts On Indian Cryptocurrency Market
Binance has acquired WazirX in November 2019 but the conflict between them still continues. It is impacting the cryptocurrency market in India a lot.
The current conflict between WazirX and Binance has once again highlighted the turbulence of the Indian cryptocurrency sector.
In light of WazirX’s lack of Binance support, it is thought that the majority of investors and potential investors are now more apprehensive than ever about whether they should continue to process payments cryptocurrency with WazirX.
Official Statements By Binance
The officials of Binance said yesterday that the acquisition of WazirX is like they got the car but not the keys. They probed that WazirX isn’t cooperating with them as well as ED (Enforcement Directorate).
Official Statements By WazirX
Rajagopal Menon, vice president of WazirX, believes it is too early to discuss investor movements.
“Moving to international exchanges may cause investors to violate government regulations, and investors will be responsible for paying 1% tax deductible at source (TDS).”
“I think there are no difficulties with the structural stability of the organization, and rupee withdrawals are working with us,” he said, adding that investors’ cryptocurrency is secure with them.
Crypto Industry Insiders’ Views
Industry insiders, however, predicted that WazirX would emerge victorious from this phase. WazirX should prioritize winning back customers’ trust, claims Pratik Gauri, CEO of blockchain platform 5ire.
The current state of the Indian cryptocurrency sector has caused many investors to lose faith in exchanges. He emphasized that WazirX should act quickly to prevent any issues or financial losses.
Binance appears to have emerged unharmed by WazirX’s moves, which have drawn criticism.
“In my opinion, Binance is subject to less regulatory monitoring than banks and other financial institutions. Despite this, since the company’s establishment, we haven’t observed any instances of fraud.
Ajeet Khurana, the founder of the Web3.0 platform Reflexical Pte Ltd, said, “I don’t think it will have an impact.
WazirX’s ₹65 Crore Bank Assets Blocked
In order to put things into perspective, the government agency Enforcement Directorate (ED) announced on August 5, 2022, that WazirX’s bank assets worth Rs 64.67 crore had been blocked.
The CEO of Binance, Changpeng Zhao, responded by officially stating via a series of tweets that his company never finished the takeover of WazirX.