Medilytix Bureau : Amid the already beaten portfolio of crypto users due to a sharp decline in crypto value and strict tax regime, the Indian crypto users are in a knot due to recent row between Binance, the world’s largest cryptocurrency exchange by trading volume, and Indian crypto exchange WazirX. The situation has worsened with Binance removing the off-chain crypto transfer to WazirX, which was a sought-after feature amongst the users as it was used for transferring value outside of the blockchain without any gas fees. Moreover, Enforcement Directorate (ED) has commenced its investigation against the directors of Zanmai Lab Private Limited, which owns WazirX.

“The users have been left in panic and are withdrawing their funds from WazirX. Even though WazirX has assured that the user’s ability to trade and withdraw will not be hampered, the ED investigation coupled with the ownership spat with Binance has raised questions on the structural viability of WazirX,” explained Ashutosh K. Srivastava, Senior Associate, SKV Law Offices.

“Considering the above state of affairs and the volatility of the crypto market, it would not be out of place for crypto users to switch their account to Binance. In fact, the nature of allegations levelled by ED may lead to suspension of WazirX and the users will be left in a soup. Therefore, until and unless the issues concerning WazirX are not resolved, users may exercise prudence and diligence with the funds invested in WazirX and may avoid any further investment unless some clarity comes,” said Srivastava.

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