Due to a deteriorating business partnership, cryptocurrency exchange Binance will no longer facilitate off-chain financial transactions between itself and WazirX.
The change will become effective on August 11. This would prevent users of WazirX and Binance from using the off-chain fund transfer feature to deposit and withdraw cryptocurrency on the two platforms. Off-chain transactions are processed through a system akin to that found on payment platforms, taking place outside of a blockchain network.
However, on-chain deposit and withdrawal methods between Binance and WazirX will still function.
The move by Binance comes as it keeps its distance from WazirX, an Indian cryptocurrency exchange it previously disclosed acquiring. WazirX’s funds were frozen by Indian officials last week.
Following the ED revelation, there was a public argument over who controls WazirX between Binance CEO Changpeng Zhao and WazirX creator Nischal Shetty. Zhao claimed that while Binance had bought some of WazirX’s assets and intellectual property, it did not actually own WazirX. WazirX is owned by Binance, according to Shetty.
Both exchanges however have publicly committed to cooperating with authorities in investigation.