Changpeng Zhao (CZ) has clarified Binance’s relationship with WazirX, the crypto exchange that the Indian regulator of banking assets recently froze.
While partnering with the company, CZ said Binance has no equity in Zanmai Labs, WazirX’s parent company.
What Is The Deal Between Binance And WazirX?
In a Twitter thread on Friday (August 5), CZ acknowledged one of the blog posts from 2019, saying that Binance had “acquired” WazirX. However, he claimed that the transaction was “never completed.”
“Binance has never- at any time- owned any shares of Zanmai Labs, the entity that runs WazirX.”
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
He added that Binance “only” provides wallet services for WazirX and off-chain trading solutions to help users save on network fees. Responsibility for all other aspects of the exchange- including withdrawals, trading, and KYC- rests with the company itself.
However, Nischal Shetty- the founder of WazirX- has stated the contrary that wazirX has been acquired by Binance and is still owned by the world’s leading exchange.
“Binance operates crypto pairs and handles crypto withdrawals.”
Shetty also said that Binance owns WazirX’s domain, has root access to its AWS servers, and holds all of WazirX’s crypto assets and profits. “Don’t confuse Zanmai with WazirX,” he continued.