Binance, the global cryptocurrency exchange, has announced its acquisition of WazirX, the Mumbai-based most trusted bitcoin exchange (India), who can buy and sell crypto with Indian Rupees (INR) on the Binance Fiat Gateway, starting from November 25, 2019.
According to sources, the transaction was estimated at $5-$10 million.
It has been reported that in the first quarter of 2020, the unique auto-matching engine of WazirX will be integrated into the Binance Fiat Gateway platform itself by bringing easy cryptocurrency access to over a billion people.
Over the last couple of years, exchanges have been shutting down due to a lack of clear regulation, and this acquisition is the first major one in the space. Secondly, through this acquisition, Binance is expected to foray into the fledgling Indian market, which is counted among the top exchanges globally.
Likewise, users on Binance.com will be able to directly place orders on Binance.com and the Binance iOS or Android app to purchase Tether (USDT) against INR. However, this integration will allow users to trade any digital asset available on Binance.com with the purchase of USDT from the WazirX digital asset marketplace.
“The young demographic in India give an edge to adopt and build on new financial technologies, and I believe this will play a vital role in making India a global blockchain innovation center to also spur cryptocurrency adoption throughout the larger public in the country.”Changpeng Zhao
“The acquisition of WazirX shows our commitment and dedication to the Indian people and strengthen the blockchain ecosystem in India as well as another step forward in achieving the freedom of money.”Changpeng Zhao
CZ also told:
“India will be one of our first forays into stimulating financial growth and access in developing nations beyond the country. We will be continuing to work towards furthering crypto adoption, lowering the barrier to entry. One of the main goals is to add more fiat currencies to Binance and work with local partners to add as many fiat-to-crypto pairs as possible.”Changpeng Zhao
Likewise, Wei Zhou, the CFO of Binance, said:
“Building fiat-to-crypto bridges remain a key mission for Binance, and WazirX will help this by providing a simple and cohesive way to purchase cryptocurrencies in a country which is home to more than a billion people.”Wei Zhou
“The acquisition will now help us to expand our P2P business geographically. The next phase of mass adoption for Crypto will arise from developing nations around the world. India with more than a billion people is primed for massive crypto adoption and this acquisition by Binance gives us the opportunity to not only cater to India but every developing nation where fiat on-ramps have to be built. The acquisition is yet another step towards achieving our shared mission with Binance of decentralizing the world.”Nischal Shetty
“Fiat ramps play a critical role in deciding the size & adoption of cryptomarket. Binance has all the major traders in the world and WazirX has tried and tested technology for next-generation peer to peer exchange, together we can drive mass adoption across the globe by solving fiat ramps.”Siddharth Menon
Nitin Sharma, an active investor in the space via Incrypt, a blockchain-investment network, said:
“This validates that despite regulatory questions, large global players will find ways of accessing the latent demand in the Indian ecosystem. The largest global exchange now has a fiat on-ramp for Indian users, and this could make players like Coinbase pay more attention. Local startups will find encouragement too.”Nitin Sharma
So, currently, WRX is available to the community through trade mining and signups and an upcoming token sale is under consideration.
It has been analyzed that about 64,000 users hold WRX.
In addition to providing an advanced cryptocurrency trading platform to Indian users, Binance has also focused on supporting and developing the Indian blockchain system as a whole.
Earlier this year, Matic Network, the India-based startup, successfully fundraised through the blockchain on Binance Launchpad and another project, Marlin Protocol, secured a USD$3 million seed round from Binance Labs, the investment arm of Binance.
However, Binance X, an initiative to foster innovation in the Binance ecosystem has begun its grassroots efforts to stimulate blockchain development and support in India with its recent event in Bengaluru to invite participation for its fellowship program to the Indian blockchain community.
Likewise, the WazirX acquisition and integration are part of Binance’s growing list of global partners to provide easy access and more options to people throughout regions for the purchase of cryptocurrency with fiat in a fast and secure manner.
Thus, Binance licenses its matching engine and wallet technologies to several partner platforms, including Binance Uganda, Binance Jersey, Binance Singapore, and newly launched Binance US, which offer fiat-crypto trading functions across a variety of currency pairs.
Source: binance.com | wazirx.com | tech.economictimes.indiatimes.com | Image Source: binance.com