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Binance Terminates Wallet Services For WazirX, To Withdraw All Funds

The development comes after WazirX co-founder Nischal Shetty refused to retract statements that Binance had purchased Zanmai Labs

Binance Terminates Wallet Services For WazirX, To Withdraw All Funds

Outlook Start-Up Desk

POSTED ON February 04, 2023 11:02 AM

The recent letter sent by Binance to WazirX, the Indian cryptocurrency exchange, has created a stir in the crypto community. Binance, being one of the leading cryptocurrency exchanges in the world, asked WazirX to retract the previous statements made by its chief executive officer (CEO) Nischal Shetty and erase all references to Binance in its terms of service. However, this request by Binance was met with strong opposition from Zanmai, the parent company of WazirX.

Zanmai called the demands made by Binance unethical and accused them of using media pressure and threats to force Zanmai to make false and misleading statements. This response from Zanmai reflects the growing discontent among the crypto community towards the highhanded approach of established players in the industry. The crypto industry, which was once known for its decentralised and democratic nature, is now being dominated by a few large players who are dictating the terms of the industry.

In addition, WazirX has been facing numerous challenges in recent months. The company has faced significant regulatory hurdles and has had to lay off a significant portion of its workforce, as much as 40 per cent last year. The company has also encountered difficulties with the Enforcement Directorate (ED), who froze and later unfroze assets worth Rs 64 crore.

The company is now locked in a legal tangle with the agency and has approached the Delhi High Court in a case related to the show cause notices served to its parent company, Zanmai Labs. The case, which is scheduled to be heard on May 2, is expected to have far-reaching implications for the crypto industry in India.

The crypto industry is in a state of flux and the events surrounding WazirX are a testament to the challenges faced by the industry. The crypto community, which was once united in its efforts to create a decentralised and democratic financial system, is now divided and facing numerous challenges. The regulatory hurdles, legal battles, and highhanded approach of established players are just a few of the challenges faced by the industry.

Despite the challenges, the crypto industry is not losing its spirit and continues to innovate and find new ways to overcome the hurdles. The events surrounding WazirX and Binance are just a small part of the larger story of the crypto industry, which is still in its early stages of development. As the industry matures and the regulatory landscape becomes clearer, the crypto community will continue to push forward and strive toward its goal of creating a decentralised and democratic financial system.

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