Despite ongoing controversy between WazirX & Binance, WazirX holds users’ funds on the Binance exchange.
WazirX is a popular Indian Crypto exchange. In 2019, Binance announced that it acquired the WazirX exchange but later in August 2022 WazirX CEO Nischal Shetty & Binance CEO Changpeng Zhao (CZ) blamed each other over the actual ownership of the exchange.
3/ Binance only provides wallet services for WazirX as a tech solution. There is also integration using off-chain tx, to save on network fees. WazirX is responsible all other aspects of the WazirX exchange, including user sign-up, KYC, trading and initiating withdrawals.
— CZ
Binance (@cz_binance) August 5, 2022
Binance (@cz_binance)
Recently CoinGabbar, a third-party platform that tracks crypto assets, released a Proof-of-reserves report of the WazirX exchange and noted that WazirX had $285 million of total user assets. Out of all these funds, the exchange held 92% ($259.07) funds on the Binance exchange & another $26.45 million on other exchanges.
Interestingly, the report noted that 19% of the funds were in Shiba Inu tokens, while (ETH) and bitcoin (BTC) holdings were 9.37% and 8.28% respectively. Which shows the impact of the Shiba Inu token in the Indian Crypto Community.
In late 2022, the WazirX exchange faced a very tough situation. On one side Indian ED agency seized huge bank deposits from the WazirX exchange & another side Binance vs WazirX controversy over the WazirX exchange ownership impacted the reputation of the exchange.
Just a few months back, WazirX confirmed that the ED agency released the seized funds back to the WazirX account. Before any kind of controversy, WazirX was the top-ranked Crypto exchange in India, in terms of 24 hours Crypto trade volume on its platform.
After the new 30% Crypto tax policy of India, the majority of the Indian Crypto exchanges saw a downfall in trade volume. Some exchanges noted that they faced a 90% downfall in trade volume.
Many unconfirmed reports claimed that the Indian finance ministry may introduce some new rules in the Crypto tax policy in the future. Few people noted that the Finance Ministry is working on a Crypto bill to impose perfect regulation on the Crypto sector, which is totally under a private domain.
Read also: Indian Crypto exchange CoinSwitch facing low trade volume
WazirX holds 90% of the customer’s fund on Binance
https://bitcoinik.com/wazirx-holds-90-of-the-customers-fund-on-binance/feed/
https://bitcoinik.com/wazirx-holds-90-of-the-customers-fund-on-binance/feed/
