Once again the controversy of Binance vs WazirX crypto exchange started, after Binance’s ultimatum to WazirX to disconnect all kinds of links with each other.
WazirX is a popular Indian Crypto exchange. In 2019, Binance exchange acquired WazirX as an Indian subsidiary but in August 2022 a controversy started between Binance & WazirX when Binance CEO Changpeng Zhao (CZ) tweeted that Binance doesn’t control WazirX exchange because the WazirX team never handed over the full control of the exchange.
On 3 Feb 2023, Binance exchange published a blog post as an indirect ultimatum to the WazirX exchange and ordered the WazirX exchange to withdraw all the funds from the WazirX’ Crypto wallets, held at Binance exchange.
On 7 Feb 2023, the WazirX exchange published a new blog post to confirm that all the user’s funds are safe and WazirX customers don’t need to take any tension regarding Binance vs WazirX conflict.
WazirX exchange also confirmed that its team will take steps to ensure the legal rights of the company against all such misleading statements.
“The allegations made by Binance in their blog are false and unsubstantiated. As far as Binance’s actions are concerned, we are taking the necessary steps to seek recourse and protect our legal rights,” the WazirX announcement read.
Reality of WazirX vs Binance controversy
As per our close investigations, here both of the Crypto companies are right at their positions. In reality, the ownership & control of the WazirX exchange was partially distributed between Binance & Zanmai Labs, a company behind the WazirX exchange.
Binance was holding full access to the WazirX data via Amazon AWS login access and also the domain name. Alternatively, we can say Binance was able to shut down the WazirX at any time, which means Binance was a key owner of the WazirX exchange.
The investigation found that the WazirX exchange team never handed over the users’ registration data to Binance, in favour of the privacy of the Indian crypto users. To maintain a trust level, WazirX never shared the user KYC section with Binance and it was the main factor that arose a conflict between these two exchanges.