Binance, the world’s largest crypto exchange by trading volume, on Friday said it does not have India-based platform WazirX despite disclosing the acquisition two-and-a-half years ago, which has baffled industry players including the Indian firm.
Binance founder and CEO Changpeng Zhao said series of tweets That the company has been “trying to close the deal for the past few years,” but has yet to complete the transaction, citing “certain issues,” which he declined to elaborate.
Binance announces acquisition of WazirX in late 2019 a blog post, The official blog post, which featured photos of Zhao and the founders of WazirX, also showed the Binance executive’s enthusiasm about the deal.
“The acquisition of WazirX demonstrates our commitment and dedication to the Indian people and marks another step forward in achieving money freedom while simultaneously strengthening the blockchain ecosystem in India,” the 2019 Post quoted him as saying. quoted.
WazirX also reported that it “Successfully acquired by Binancein a separate blog post.
Zhao said on Friday that Binance, the entity that operated WazirX and founded by the original founders, “has no equity in Zanmai Labs”.
“On November 21, 2019, Binance published a blog post stating that it had ‘acquired’ WazirX. This transaction was never completed. Binance will never – at any time – have Zanmai Labs to operate WazirX. does not own any shares of the entity in question,” he wrote.
“Binance only provides wallet services for WazirX as a technical solution. There is also integration using off-chain tx to save on network fees. WazirX is responsible for all other aspects of the WazirX exchange, including user sign-up This includes introducing KYC, trading and withdrawals,” he said.
The clarification comes after India’s Enforcement Directorate has frozen over $8 million worth of WazirX assets, citing suspected violations of foreign exchange rules.
“The recent allegations regarding the operation of WazirX and how the platform is managed by Zanmai Labs are of deep concern to Binance. Binance cooperates with law enforcement agencies around the world. Will be happy to act in kind,” Zhao said.
The Indian Anti-Money Laundering Agency said in its order on Friday that Binance rarely responds to queries sent to its official legal compliance email address.
WazirX is the largest crypto exchange in India by trading volume. Its annual trading volume exceeded $43 billion in 2021, which is “an increase of 1,735% over 2020,” the company said late last year. The platform also provides its technology to several other Indian exchanges.
Updated at 10.58 PM ISTWazirX co-founder Nischal Shetty has denied Zhao’s claims, claiming that Binance actually acquired WazirX. In a series of tweets, he said: