WAZIR-X… OUCH! A BINANCE EX SCORNED!
THREE QUESTIONS WE’RE ASKING TODAY FROM OUR GLOBAL PERSPECTIVE…
AMID REGULATORY SCRUTINY AND TUSSLES BETWEEN BINANCE AND WAZIRX,
SOME INDIAN TRADERS ARE MAKING A SWIFT EXIT - BUT HAVE OTHERS MISSED THE BOAT?
CIRCLE SAYS IT WILL ONLY SUPPORT
PROOF-OF-STAKE POST ETHEREUM MERGE - WHAT DOES THAT MEAN FOR ADVOCATES OF PROOF-OF-WORK FORKS?
AND VITALIK BUTERIN SAYS HE’S USED BLACKLISTED CRYPTO MIXER
TORNADO CASH - WHY IT’S IMPORTANT TO REMEMBER THEY DO HAVE LEGITIMATE USES.
LET’S GET YOU UP TO SPEED FROM ASIA TO THE WORLD.
TIMES ARE TOUGH AT WAZIRX - NOT ONLY IS THE INDIAN EXCHANGE
IN THE CROSSHAIRS WITH LOCAL AUTHORITIES - WITH EIGHT MILLION U-S DOLLARS WORTH OF ASSETS
FROZEN WHILE ALLEGED FOREIGN EXCHANGE VIOLATIONS ARE INVESTIGATED.
IT’S ALSO EMBROILED IN A SPAT OVER OWNERSHIP WITH BINANCE WHICH SURFACED AS A RESULT.
THAT’S SEEN SOME USERS RUSHING TO MAKE AN EXIT - HOWEVER BINANCE IS SHUTTING DOWN OFF-CHAIN FUND
TRANSFERS FROM AUGUST 11, WHILE WAZIRX HAS ISSUED A WARNING OVER KNOW-YOUR CUSTOMER PROCEDURES.
SO WHERE DOES THAT LEAVE INVESTORS?
FORKAST’S PRADIPTA MUKHERJEE REPORTS:
CRYPTO INVESTOR NEEL KUKRETI RECKONS HE MAY BE ONE OF THE LUCKY ONES -
LIKE THOUSANDS OF OTHERS, THE 24-YEAR-OLD HAD ASSETS WITH WAZIRX
WHEN INDIA’S ENFORCEMENT DIRECTORATE REPORTEDLY FROZE SOME OF ITS BANK ACCOUNTS.
THINGS GOT MORE COMPLICATED AS ACCUSATIONS AND DENIALS BEGAN TO SURFACE BETWEEN
WAZIRX AND BINANCE OVER OWNERSHIP. WAZIRX IS ONE OF INDIA’S LARGEST
CRYPTO EXCHANGES BY VOLUME AND BACK IN 2019 BINANCE ANNOUNCED IT HAD ACQUIRED THE PLATFORM.
HOWEVER, BINANCE’S BLOG POST MAKING THAT ANNOUNCEMENT NOW ADDS A CLARIFICATION
WHICH SAYS THE AGREEMENT WAS LIMITED TO CERTAIN ASSETS AND INTELLECTUAL PROPERTY ONLY.
BINANCE CEO CHANGPENG ZHAO TWEETED SIMILAR,
STATING THAT BINANCE HAS NEVER OWNED SHARES IN ZANMAI LABS - THE ENTITY WHICH OPERATES WAZIRX.
YOUTUBER AND CRYPTO EDUCATOR KUKRETI
TOLD FORKAST HE FELT IT WAS TIME TO DO SOMETHING FOR HIS OWN SAFETY:
“I HAVE MOVED MY CRYPTO ASSETS FROM WAZIRX TO BINANCE, SINCE BINANCE IS RELATIVELY MORE
STABLE AND WITH THE RECENT CONTROVERSY, THERE IS A CHANCE THAT WAZIRX MIGHT SHUT ITS OPERATIONS.
ALTHOUGH NOTHING CONCRETE IS OUT YET. BUT I DON'T WANT TO RISK MY ASSETS.”
KUKRETI’S MOVE CAME AHEAD OF BINANCE SAYING IT WOULD SHUT DOWN ITS OFF-CHAIN TRANSFER CHANNEL
WITH WAZIRX FROM AUGUST 11TH AS A FALLOUT OF THE GOVERNMENT’S ALLEGATIONS AGAINST ZANMAI LABS.
HOWEVER, THAT DOESN’T CUT OFF ALL OPTIONS - BINANCE SAYS THE STANDARD WITHDRAWAL AND
DEPOSIT PROCESS BETWEEN THE TWO WILL REMAIN. KUKRETI WASN’T THE ONLY ONE TO JUMP - WAZIRX
TWEETED THAT IT HAD NOTICED MANY USERS WERE OPTING TO WITHDRAW FUNDS TO INTERNATIONAL
EXCHANGES AND ISSUED A WARNING SAYING THEY MAY BE UNKNOWINGLY NON-COMPLIANT WITH INDIAN TAX RULES.
THE COMPANY HAS SINCE ISSUED A STATEMENT EXPLAINING THE NEED FOR KNOW-YOUR-CUSTOMER DETAILS
AND STATING IT HAS A NO-TOLERANCE POLICY TOWARDS ANY ILLEGAL ACTIVITIES.
DESPITE THE DARK CLOUDS - TRADING VOLUME AT THE EXCHANGE
HASN’T COLLAPSED BEYOND THE USUAL UPS AND DOWNS SEEN OVER THE LAST MONTH.
ONE FINANCIAL MARKETS EXPERT TOLD FORKAST
THAT COULD REFLECT THE POSSIBILITY OF NEW ALLIANCES BEING FORGED:
“SOMETIMES EVEN IN TRADITIONAL FINANCIAL MARKETS, THE EXIT OF ONE
ENTITY IN AN UNCOMFORTABLE ENVIRONMENT CREATES OPPORTUNITIES THAT OTHER PLAYERS TRY TO BUY INTO
BECAUSE IT SUITS THEIR DIFFERENT BUSINESS MODEL. THIS MAY BE REFLECTED IN HIGHER TRADING VOLUMES
AND THE AND THE PROBABLE EMERGENCE OF NEW ALLIANCES.”
WE WILL OF COURSE BE KEEPING WATCH OVER WHAT HAPPENS NEXT IN THE SAGA!
IN KOLKATA, INDIA, I’M PRADIPTA MUKHERJEE. FORKAST
AS THE ANTICIPATION OVER THE LONG AWAITED ETHEREUM MERGE BUILDS – TWO OF THE LARGEST
STABLECOIN ISSUERS HAVE EXPRESSED THEIR SUPPORT.
TETHER AND USDC BOTH SAID THEY WILL SUPPORT ETHEREUM’S PROOF OF STAKE, OR P-O-S CHAIN.
TETHER SAID IT’S IMPORTANT THAT THE ETHEREUM ECOSYSTEM
“IS NOT WEAPONIZED TO CAUSE CONFUSION AND HARM WITHIN THE ECOSYSTEM
– ADDING IT WILL SUPPORT P-O-S ETHEREUM IN LINE WITH THE OFFICIAL SCHEDULE.
USDC CREATOR CIRCLE MEANWHILE, SAID ITS SOLE PLAN IS TO FULLY SUPPORT THE UPGRADED P-O-S CHAIN.
THAT MAY COME AS BAD NEWS TO MINERS LIKE CHANDLER GUO, WHO
HAD PROPOSED A SPIN-OFF PROOF-OF-WORK FORK.
WHY? WELL, THAT’S BECAUSE IT WOULD ALLOW
MINING EQUIPMENT RENDERED USELESS BY THE MERGE TO REMAIN PROFITABLE.
CIRCLE SAID THAT WHILE IT WON’T SPECULATE ON THE POSSIBILITY OF FORKS,
USDC AS AN ETHEREUM ASSET CAN ONLY EXIST IN A SINGLE VALID VERSION.
THE MERGE IS EXPECTED TO HAPPEN ON SEPTEMBER 19TH.
SPEAKING OF ETHEREUM, COFOUNDER VITALIK BUTERIN MAKING HEADLINES AGAIN.
BUTERIN TWEETED TO SAY THAT HE HIMSELF HAS USED THE BLACKLISTED
CRYPTO MIXER TORNADO CASH TO DONATE TO UKRAINE.
THE U-S TREASURY DEPARTMENT BLACKLISTED THE
CRYPTO MIXING SERVICE ON MONDAY FOR ITS FACILITATION OF MONEY LAUNDERING.
HOWEVER, BUTERIN’S TWEET IS A TIMELY REMINDER THAT MIXERS DO HAVE LEGITIMATE USES.
BUTERIN SAID THAT HIS INTENT IN USING THE SERVICE WAS TO PROTECT THE RECIPIENTS, NOT HIMSELF.
– HE EXPLAINED THAT THE GOVERNMENT OF RUSSIA, THE COUNTRY OF BUTERIN’S BIRTH,
IS WELL AWARE OF HIS POSITION ON UKRAINE. A RECENT REPORT FROM CHAINALYSIS MADE A
SIMILAR POINT - STATING THAT PEOPLE WHO LIVE UNDER OPPRESSIVE GOVERNMENTS NEED THE ABILITY
TO MAKE LEGAL TRANSACTIONS ANONYMOUSLY AND – A CRYPTOCURRENCY FIRST IN IRAN.
HE COUNTRY HAS MADE ITS FIRST CRYPTO PAYMENT FOR A 10 MILLION U-S DOLLAR IMPORT ORDER
HOWEVER, IT’S A CONTROVERSIAL MOVE AS DIGITAL ASSETS COULD BE AN OPTION FOR THE COUNTRY TO
BYPASS THE GLOBAL FINANCIAL SYSTEM AND THUS GET AROUND SANCTIONS PLACED ON THE COUNTRY.
THE U-S, FOR EXAMPLE, IMPOSES A NEAR-TOTAL ECONOMIC EMBARGO ON IRAN - THAT INVOLVES A
BAN ON ALL IMPORTS INCLUDING THOSE FROM THE OIL, BANKING, AND SHIPPING SECTORS
THE COUNTRY’S VICE MINISTER OF INDUSTRY, MINE, AND TRADE SAID THE USE OF CRYPTOCURRENCIES AND SMART
CONTRACTS WILL BE WIDESPREAD IN FOREIGN TRADE WITH TARGET COUNTRIES BY THE END OF SEPTEMBER
AND THAT’S YOUR DAILY FORKAST - FROM ASIA TO THE WORLD.
FOLLOW US ON TWITTER FOR THE LATEST UPDATES @FORKAST_NEWS.
HEAD TO OUR WEBSITE AS WELL FOR MORE DETAIL ON ALL OF TODAY’S STORIES AND MORE.
DON'TDONT FORGET TO SUBSCRIBE AND LIKE.
UNTIL NEXT TIME, I’M FORKAST EDITOR-IN-CHIEF ANGIE LAU.