- Binance discontinues wallet support for WazirX: Binance has stopped its wallet services for WazirX following a disagreement over ownership of the Indian exchange. A deadline has been given for Zanmai Labs to withdraw funds used for WazirX’s operation.
- Alleged violations of foreign exchange regulations by WazirX: Indian authorities have started looking into the operations of the exchange due to alleged violations of foreign exchange regulations.
- Proof of reserves revealed: A proof of reserves report shows that 90% of user assets are stored in Binance wallets, with only $26.45 million held by other exchanges.
Binance Discontinues Wallet Support for WazirX
Binance, the world’s biggest crypto exchange, has ended its wallet support for WazirX, an Indian cryptocurrency platform, after false claims were made by Zanmai Labs which manage the platform. In a blog post, Binance stated it had given Zanmai Labs an opportunity to retract these untrue statements or end the partnership and since no satisfactory reply was received it was forced to terminate their association. The deadline set by Binance is February 3rd 2023 at 11:59 UTC for Zanmai Labs to recover all assets utilized in WazirX’s operations, although they have expressed intentions to do so and have noted the final responsibility lies on them.
Alleged Violations Of Foreign Exchange Regulations By WazirX
This dispute began when Indian authorities started looking into the operations of this exchange due to alleged violations of foreign exchange regulations. This argument ignited between Nischal Shetty co-founder of WazirX and Changpeng Zhao CEO of Binance concerning who holds authority over this platform. This controversy came about after a proof-of-reserves report was published by CoinGabbar a third-party website tracking crypto assets showed 90% user assets stored in Binance wallets with only $26.45 million held by other exchanges out of total user asset value amounting to $285 million represented through stablecoin USDT linked to US dollar value.
Proof Of Reserves Revealed
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In response Binance clarified that although it does provide wallet and tech services it does not own any part or share equity in this platform despite announcements back in 2019 pointing otherwise. They also mentioned that if these withdrawals are not carried out according to plan legal proceedings will be taken against those accountable while protecting their customers from any loss incurred as a result thereof.
Disputes Between Parties
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These events come right after both parties engaged in public disputes on Twitter regarding ownership rights over this platform making allegations such as one side claiming others were trying manipulate their way through and other side refuting such accusations while emphasizing they don’t own any part or share equity in this organization but merely offer tech and wallet services which can be withdrawn anytime without prior notice or consent from either party as per terms conditions set forth at start agreement .
Conclusion
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To conclude these recent events show how important it is for organizations involving digital money transfers via blockchain technology adhere laws guidelines issued respective countries failure do so could lead serious repercussions such legal action seizure bank accounts etc all designed protect consumers from potential losses incurred due malpractice negligence committed provider end .