Binance has bought Indian exchange WazirX for 5 to 10 million dollars. Binance is buying access to the Indian crypto market. The move comes after China has banned all crypto exchanges. Binance is switching quickly and now hopes to get the 1 billion customers out of the Indian subcontinent.
Crypto exchange Binance has taken over Indian crypto exchange WazirX. WazirX is one of the last remaining Indian crypto exchanges. This is because Indian regulations have acted strictly against crypto in the last year.
Binance’s choice to buy WazirX is, therefore, a gamble. Clear regulations will probably not be published until January 2020. Whether this regulation will be positive for crypto exchanges is still completely unclear.
Last man standing
WazirX is one of the last remaining Indian exchanges. Koinex, Coindelta, Coinome, and Zebpay have all gone bankrupt due to strict action by the Indian financial watchdog. The new regulation, which is due in January, can also go completely the wrong way: one of the bills would prohibit crypto and punish its use with 10 years in jail.
If the regulations turn out to be positive, then with WazirX, Binance is ready to conquer India. WazirX gives Binance access to fiat-to-crypto support for the Indian rupee. WazirX has the most popular crypto trading app in India. WazirX also has its own WRX utility token with 64,000 users who are encouraged to participate in crypto trading and mining through the token. Finally, WazirX gives Binance access to its peer-to-peer trading system.
By buying WazirX, Binance gambles in an unclear market: if they have guessed correctly, they will gain 1 billion potential customers. Then an investment of 5 to 10 million dollars is worth it.