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
- Existing 'Login via Binance' Users: Must reset passwords using the 'Forgot Password' option, ensuring the email matches their Binance account.
- TDS Compliance: WazirX emphasized that international exchanges like Binance often lack a TDS framework, shifting tax-reporting burdens to 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
- Fund Transfer Options: On-chain transactions remain viable; off-chain transfers to Binance are halted.
- User Advisory: WazirX cautions against migrating to platforms without TDS infrastructure.
- 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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