Cryptocurrency exchange Binance has decided to disable the off-chain transfer between the two exchanges after the deterioration of relations with WazirX.
This decision, announced by the crypto exchange Binance, will take effect on August 11. Thus, Binance and WazirX users will not be able to use the off-chain transfer option to deposit and withdraw crypto on both exchanges. Off-chain transactions, known as off-chain transactions, occur outside of a blockchain network and have a mechanism similar to traditional payment platforms.
On-chain options between Binance and WazirX will continue to work in the same way.
Conflict Between Binance and WazirX Grows
This move by the crypto exchange Binance means that the company has strengthened its attitude towards WazirX. With Indian security forces confiscating WazirX funds last week, Binance announced that they had never fully acquired the company.
The Executive Directorate of India announced on Friday that it had frozen approximately $8 million in assets belonging to WazirX. The regulator claimed that the exchange was conducting a money laundering operation in connection with Chinese credit practices.
Harsh Statements Received From The Founders Of The Two Companies
After WazirX’s trouble, there was a debate between Changpeng Zhao, the founder of the crypto money exchange Binance, and Nischal Shetty, the founder of WazirX, about who WazirX belongs to. CZ stated that they do not own WazirX, only purchase certain assets and intellectual property. Shetty stated that WazirX is owned by Binance.
Changpeng Zhao said in a statement on his Twitter account:
“Fact: We requested the transfer of WazirX system source code, deployment, operations in February of this year. These requests were denied by WazirX. So Binance has no control over WazirX systems. WazirX did not cooperate with us. Also with the Executive Director of India”
https://twitter.com/cz_binance/status/1555844644491202561
Binance stated that WazirX is operated and managed by Zanmai Labs, which is owned by Shetty and other co-founders.
Shetty, in a statement last February, stated that Binance had to buy its shares in order to control Zanmai.
5351
