Since the bear market in 2022, Binance, the world's largest cryptocurrency exchange, and WazirX, India's largest login password exchange, have been fighting each other for a long time. The controversy continued into the new year, when Binance recently gave Wazirx a deadline to withdraw his statement or risk losing the opportunity to use Binance Wallet and Services.

WazirX seeks recovery

The disagreement between Binance and Zanmai Labs depends on who has de facto control of the Indian exchange. Zanmai Labs is the head office of WazirX with a registered address in Singapore. The conflict between the two management employees became known in August 2022, when BinanceCEO Zhao Changpeng first made it clear on Twitter that Binance did not have control of WazirX. This prompted Nishal Shetty, founder of WazirX, to clarify the facts later on Twitter.

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WazirX pointed out in a blog post on February 7th that its customers need not be disturbed by Binance's announcement, as the entire process of asset transfer is said to have been completed. The company also stressed that the exchange was well prepared to ensure that WazirX's digital currency was deposited in accordance with what is described as the strictest standards in the industry. As a result, users can buy and sell, save and withdraw money normally again.

Referring to Binance's allegations, the report quoted the login password exchange as saying:

The allegations made by Binance in his blog are false and unsubstantiated.

In addition, the Indian intermediary Exchange has determined that he will take the necessary actions to uphold justice and safeguard his legitimate rights and interests under such circumstances. Although not explicitly mentioned, WazirX is likely to adopt legal procedures to restrict Binance to stop its services; this will be the first time for India to log in to the password market.

Binance vs WazirX

Based on the information obtained, Binance sent a full disc to WazirX on January 26th, ordering the exchange to delete what it called "false statements and false descriptions" or stop using Binance's data-encrypted wallets by February 3. However, on February 3rd, Binance noted in a blog post that it was granting exemptions and arranged for WazirX to develop a procedural process to obtain all remaining cryptocurrencies on the account.

Since WazirX reports that 90 per cent of its consumer assets are held in Binance wallets, the solution clearly avoids anxiety about what will happen to customers' money if Binance and WazirX decide to terminate the partnership. On the other hand, WazirX later claimed that it had begun a process of transferring property to multi-signature wallets, which was completed at this stage without all fundamental problems.