WazirX Owner Clears Doubts About ED Probe, Binance Row; Trading volume decreases by 54% in 5 days



WazirXIndia’s largest cryptocurrency exchange, has seen a 54 percent drop in trading volume in the past five days, according to the data. Cryptocurrency Trading volume on the popular exchange fell to $2 million on August 9 from $4.3 million on August 5, data from research firm CREBACO revealed.

Last week, the Directorate of Enforcement (ED) conducted searches on one of the directors of Zanmai Labs Pvt Ltd, which owns Cryptocurrency platform He issued an order to freeze the bank balance of approximately Rs 64.67 crore in cash. On August 9, Zanmai Lab released a statement, “WazirX is a platform co-operated by Zanmai Labs Pvt. Ltd. (Zanmai Labs) and Binance. Zanmai Labs has a zero-tolerance policy towards any illegal activities using WazirX.”

Binance has distanced itself from WazirX: Find out why

Then, Binance, a popular global cryptocurrency exchange, distanced itself from the Indian exchange. CEO Changpeng Zhao said that Binance does not own a stake in WazirX’s parent entity Zanmai Labs. “As a result of the recent regulatory action taken against Zanmai Labs Pvt Ltd, in connection with its operations on the WazirX Exchange, it has come to our knowledge that some users have been given the belief that funds deposited with WazirX are being managed by Binance,” said Patrick Hellman, Binance Chief Communications Officer. : “This is not the case.” It also disrupted “off-chain fund transfers between the two platforms – Binance and Wazir X from August 8.” Off-chain transfers are among the main issues cited by the money laundering investigation agency, according to people familiar with the development. .

“Despite being repeatedly given chances, WazirX has failed to give crypto transactions to shady fintech app companies and wallets KYC disclosures. Most transactions are not recorded on the blockchain either,” the ED said in a press release on August 5.

Binance does not control the operations including “user registration, KYC, trading and initiation of withdrawals”, as previously stated. This is controlled by the founding team of WazirX. This was never transferred, despite our requests. The transaction was not closed. CEO Zhao said on Twitter.

WazirX-Binance property row has caused panic among crypto users

Uncertainty about ownership and investigation by the ED has caused panic among cryptocurrency users. WazirX accounts for more than 50 percent of the country’s trading volume. The company reported that cryptocurrency trading volume on the WazirX platform rose 1,735 percent year-on-year to $43 billion last year, bringing the total user base to 10 million. According to reports, many users have already withdrawn their funds and closed their accounts on the platform.

Zanmai Labs recently said that it does not belong to any user who indulges in illegal activities. Users are only registered on WazirX after they complete the KYC process, including providing proof of address and identity. Our KYC/Anti Money Laundering terms and processes are generally available on the platform. For each transaction, we are able to provide KYC details to the relevant user. relevance.”

“ED appears to be investigating the transactions of some users and Zanmai Labs has no affiliation with such users and is not aware of the purpose of their transactions. Zanmai Labs is putting any other broker whose platform may have been abused,” he added.

Zanmai Labs, which runs WazirX, removes suspicions about off-chain transactions with Binance

Dispelling doubts about off-chain transactions, Zanmai Labs said: “Off-chain transactions between WazirX and Binance can only be performed by a user between his/her own account on the two platforms. Thus, KYC details are available for all off-chain transfers as well. [and have been submitted to the ED when requested]. Off-chain withdrawals also cannot occur if the accounts are not in accordance with KYCed.”

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