New Delhi, Aug 10 : The homegrown cryptocurrency exchange WazirX has seen a dramatic 50% decline in the trading volume on its platform and its WRX crypto token fell from the price of Rs 23 earlier this month to 17 on Wednesday.The rift between Nischal Shetty’s cryptocurrency platform WazirX and Changpeng Zhao’s Binance got more intense.In the past seven days, the trading volumes have dropped by more than 55 percent – from $4.3 million on August 5 to $2 million on August 9.
WazirX is home to nearly 15 million users , and is India’s most popular cryptocurrency exchange is in the middle of controversy following the Enforcement Directorate (ED) raids at the company that is its parent, Zanmai Labs.
The ED raids resulted in Zhao-run Binance not acquiring WazirX that it had purchased on November 21, 2019.
Zanmai Labs said in its latest announcement that it is fully cooperating with the ED and WazirX is a platform jointly operated by Zanmai Labs Pvt Ltd (Zanmai Labs) and Binance.
“The ED appears to be looking into the activities of certain users.
Zanmai Labs has no affiliation with these users and is not aware of the reason of the transactions of these users,” stated the company.
Following the ED raids on Zanmai Labs, Binance first shut down WazirX and then announced that it would be taking away the off-chain transfer channel for WazirX as well as Binance.
Zanmai Labs said that there appears to be a huge misconception about off-chain transactions between WazirX and Binance.
“Off-chain transactions” between WazirX and Binance can only be made by a user who has his/her own account on both platforms.
Therefore, KYC details are available for all off-chain transactions and also (and have been provided to the ED upon request),” it argued.
WazirX is the largest cryptocurrency exchange in India and its annual trading volume was more than $43 billion in 2021.
na/arm
