Delhi High Court Directs WazirX Operator to Reveal Binance Deal and Restructuring Strategy

The High Court of Delhi has mandated that the operator of the cryptocurrency exchange WazirX disclose its agreement with Binance, the world’s leading crypto exchange, as well as its restructuring plans. This order arises amidst an ongoing investigation by the Enforcement Directorate (ED) into alleged violations of the Foreign Exchange Management Act (FEMA). The ED alleges that WazirX facilitated significant illicit cryptocurrency transactions. The court order requires WazirX to provide comprehensive documentation regarding its relationship with Binance, encompassing any agreements, contracts, or memorandums of understanding. Furthermore, WazirX must disclose any restructuring or reorganization initiatives, including proposed alterations to its ownership or management structure. This action marks a crucial development in the ongoing regulatory scrutiny of cryptocurrency exchanges within India. Indian authorities are diligently monitoring cryptocurrency-related activities to ensure adherence to domestic laws and regulations. This court order is expected to have considerable ramifications for the future of WazirX and its relationship with Binance, in addition to the broader landscape of cryptocurrency trading in India. The case is under continued review by the court.