The world’s largest crypto exchange Binance on Monday said it will cease the off-chain fund transfer channel between WazirX and Binance. The move comes after some users claim that funds deposited in WazirX were managed by Binance.
Binance in a press release on August 8 announced that it will cease the off-chain fund transfers between WazirX from August 11 at 03:00 UTC.
The recent regulatory action against Zanmai Labs Pvt Ltd by India’s Enforcement Directorate led to a heated battle over the ownership of crypto exchange WazirX.
Binance’s CEO “CZ” had earlier clarified that the crypto exchange didn’t own a stake in WazirX’s parent firm Zanmai Labs. However, Zanmai Labs owners think otherwise. They believe the deal was completed in 2019.
In order to further provide clarity and protect users, Binance is now removing the off-chain fund transfer channel between the two crypto exchanges. Some users claim Binance manages fund deposits in WazirX. However, the claim is false.
Binance will discontinue the off-chain fund transfer through the “Login with Binance” option. However, users can still use the standard withdrawal and deposit process to deposit or withdraw funds.
Furthermore, the global crypto exchange will support Indian regulators in the ongoing investigation. Binance asserts the exchange keeps regulators, policymakers, and law enforcement at the forefront.
“Binance believes in keeping an open dialogue with regulators, policymakers, and the law enforcement community as we collectively seek to establish a global regulatory framework for the industry.”
Last week, Binance CEO “CZ” tweeted that they can shut down the domain. However, they will not do that as it hurts users. In response, WazirX’s founder claim “CZ” words are proof that they do own WazirX.
Binance’s CEO urged users to withdraw their funds on WazirX and transfer their funds to Binance or other wallets. Moreover, he also accuses the India crypto exchange of being uncooperative with Binance and with the Enforcement Directorate.
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