The WazirX acquisition deal has been broken by Binance CEO Changpeng Zhao, and the Indian cryptocurrency exchange and the wider crypto community are looking for definitive explanations….
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Link between Binance and India’s WazirX
Binance and India’s WazirX are related
In a blog post announcing the acquisition of WazirX, Binance explained how customers would be able to access the entire range of cryptocurrencies directly through Binance’s trading platforms, invest in stable coins like Tether (USDT), and purchase cryptocurrencies using Indian rupees (INR).
Why is Binance putting WazirX further away?
Because WazirX, an Indian cryptocurrency exchange, is being investigated by the Enforcement Directorate for allegedly helping fast loan app companies launder money, Binance has opted not to list there.
On August 5, 2022, Zhao tweeted a series of messages that appeared to distance Binance from all activities at WazirX or its parent business Zanmai Labs. He added that all operational matters are completely the responsibility of the Indian cryptocurrency exchange.
It was made clear that the acquisition and integration of WazirX is a part of the business’s aim to build its network of international partners in an effort to give the world’s crypto community quick, secure access to cryptocurrencies.
Zhao further went on to explain Binance’s dedication to fostering the cryptocurrency ecosystem in India and turning the country into a hub for global blockchain innovation. Nischal made a comment about how the acquisition gives WazirX the chance to reach audiences outside of India by constructing fiat on-ramps, as well as other developing countries.
WazirX: What might occur?
Zhao’s clarification prompted reactions from Shetty as well. According to Shetty, Binance is the real owner of WazirX, but Binance has emphasized that the 2019 ‘acquisition’ was really a contract to buy specific assets and intellectual property of WazirX.
All Indian cryptocurrency exchanges, including WazirX, have received summonses from the ED for allegedly assisting 16 lending app companies with cryptocurrency money laundering. If this information is accurate, Indian cryptocurrency investors risk losing total control over their money.