WazirX Updates Fund Transfer Policy Amid Binance Feud, Advises Users Against Transfers

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Policy Change Announcement

Effective August 11, 2022, WazirX has discontinued off-chain fund transfers between its platform and Binance via the 'Login with Binance' option. The exchange clarified that on-chain withdrawals and deposits remain operational for users.

"Users can still deposit and withdraw balances via standard on-chain processes. WazirX continues to explore options to expand on-chain functionalities," the announcement stated.

Implications for Users

Background of the Feud

The dispute escalated after Binance CEO Changpeng Zhao denied completing the acquisition of WazirX, contradicting claims by WazirX co-founder Nischal Shetty. This followed the Enforcement Directorate (ED) freezing WazirX-linked assets worth ₹65 crores.

Key Takeaways

  1. Fund Transfer Options: On-chain transactions remain viable; off-chain transfers to Binance are halted.
  2. User Advisory: WazirX cautions against migrating to platforms without TDS infrastructure.
  3. Ongoing Conflict: Legal and operational tensions between WazirX and Binance continue.

FAQ Section

Q1: Can I still transfer funds from WazirX to Binance?
A: Only via on-chain withdrawals; off-chain transfers are discontinued.

Q2: What should 'Login with Binance' users do now?
A: Reset your WazirX password using the same email linked to your Binance account.

Q3: Why is WazirX discouraging Binance transfers?
A: Due to potential tax-compliance complexities, as Binance lacks India’s TDS framework.

Q4: How does this impact WazirX’s 15 million users?
A: Users must rely on on-chain methods and monitor tax obligations independently if switching platforms.

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Industry Context

The move highlights growing regulatory scrutiny on Indian crypto exchanges and the challenges of cross-platform fund transfers. WazirX’s emphasis on TDS compliance aligns with India’s stricter crypto taxation policies.

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Keywords: WazirX, Binance, Indian crypto exchange, off-chain transfers, TDS compliance, blockchain, Nischal Shetty, crypto regulations


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