Legal documentation in place to prove WazirX owned by Binance said Nischal Shetty
Crypto Exchange giant WazirX founder Nischal Shetty expressed he has all the legal documents to prove that Binance controls all crypto trading and crypto deposits and withdrawals on the platform.
Also expressed Zanmai Labs had a license from Binance to process INR Transactions on Binance.
Nischal Shetty said Zanmai Labs, an Indian entity that operates WazirX is owned by him and other co-Founders and has a license from Binance for processing rupee transactions WazirX as a product and a brand is owned by Binance which was acquired in 2019.
Nischal Shetty said there was a banking ban in place when the acquisition took place and after the ban was lifted an Indian entity was required for WazirX to process rupee deposits and withdrawals.
He expressed "That is when they suggested and we obliged that we use an entity we own and we get a licence from them (Binance) for processing rupee deposits and withdrawals. That is how Zanmai got the licence for WazirX from Binance and you can only give a licence if you own it. That is proof they had acquired WazirX"
Directorate of Enforcement (ED) froze assets worth approx RS.65 Crore of WazirX as part of an investigation into alleged money laundering involving 16 Indian fintech companies.
Changpeng Zhao CEO of Binance the world's largest crypto exchange has expressed in tweets "it doesn't own WazirX. On August 5 Binance said the 2019" acquisition described in this blog was limited to an agreement to purchase certain assets and intellectual property of WazirX.
He added that since KYC is essential to withdraw, deposit, and trade on WazirX the exchange can pinpoint the identity of the person on being provided with the transaction ID also whenever law enforcement sought specific data, they were provided with information available.
Nischal Shetty expressed, Crypto to crypto trading and crypto deposits and withdrawals are directly owned by Binance and you can get this information in the terms and conditions of the website. we have a proper legal document of acquisition and a license to operate the rupee market in India.
He refused to disclose the valuation at which WazirX was acquired by Binance.
Changpeng Zhao claims that it had nothing to do with WazirX despite the legal documentation in place, Shetty said in tweets were a surprise to him because it's been 2.5 years since the acquisition
Asked about the fate of users who deposited funds with WazirX if the account remains frozen for a prolonged period Shetty said frozen does not mean that the funds are lost.
Shetty said, Even for any bank, if a customer wants to withdraw everything they have on the same day, it is not possible for a bank if a part of the asset is frozen for whatever reason there is also going to be a timeframe for which the asset would be ideal unfrozen if there is no issue. if the entity provides all the information and any confusion is solved.
he added what is more important is solvency we are not short on money would there be a delay in withdrawals if too many people come in at the same time? may or may not. but this can happen to any exchange. But our deposits have not been reduced user funds are safe with us and have not gone anywhere it is still in the bank. We never use our user funds for any purpose.
WazirX got into the government's crosshairs Shetty said the exchange is the largest in the country and the most popular and therefore maybe WazirX gets the most traction. "We have been constantly cooperating with ED"