Binance, the world's largest crypto exchange platform reported the discontinuation of the off-chain fund transfer channel with WazirX starting on August 11.
The action is due to some users claiming that the funds stored in WazirX are managed by Binance.
WazirX is India's largest crypto exchange platform with parent entity, Zanmai Labs Pvt Ltd. The platform is said to have received a license to process rupee transactions acquired in 2019.
The recent regulatory action against Zanmai Labs Pvt Ltd by India's Enforcement Directorate (ED) has led to a dispute over the ownership of crypto exchange, WazirX.
WazirX was previously reported to be facing money laundering charges, and the crypto platform's bank assets were frozen with an estimated value of over $8 million.
Binance CEO Changpen Zhao "CZ" has previously clarified that Binance does not own an interest in WazirX's parent company, Zanmai Labs. Nevertheless, the owner of Zanmai Labs is confident that the deal will be completed in 2019.
Binance has released an off-chain fund transfer channel between the two crypto exchanges to provide in-depth clarification and protect users.
Some users also made claims that Binance manages WazirX fund deposits but those claims are simply false.
Therefore, Binance will stop off-chain fund transfers through the “Login with Binance” option. However, users can still use the standard withdrawal as well as the process to deposit or withdraw funds.
Also, CZ has stated that they could choose to close the domain, but that would not be done because it would inconvenience users.
In response, the founders of WazirX claimed that CZ's words were proof that they owned WazirX.
CZ has also urged users to withdraw their funds on WazirX and transfer funds to Binance or other wallets. He added that CZ also claimed that the Indian crypto exchange did not cooperate with Binance and the Enforcement Directorate.
