Acquisitions

Global Crypto Exchange Binance Acquires Indian Crypto player WazirX

It is no secret that India’s cryptocurrency industry is going through period of great uncertainty due to regulatory clampdowns and lack of clarity on account of government policies. In such testing times, it was only matter of time that the industry would eventually some consolidation. And today the industry did witnessed the much anticipated consolidation, after Global Crypto Exchange Binance acquired the Mumbai based cryptocurrency exchange Wazirx for undisclosed amount.

Although both companies have remained mum over the exact value of the deal, sources privy to the matter suggest that the deal was worth $4-5 Mn. If the low value quoted by the sources is indeed true then this looks like ‘sale of distressed asset,’ in what appears to be a clear sign of India’s cryptocurrency industry going through adverse times.

Wazirx had launched its operation only earlier this year and had achieved pretty significant traction among crypto investors since its debut. However, in the wake of regulatory clampdowns, many Indian cryptocurrency were witnessing closure and Wazirx was also facing the heat.

As for Binance, this acquisition will mark its formal entry into the Indian market. Binance’s entry may infuse a fresh breath of life into India’s fledging crypto investment market, since the platform enjoys a huge global reputation among the crypto investors. In fact, Binance is widely hailed amongst world’s topmost cryptocurrency spot exchange.

Commenting on acquisition, Binance CEO Changpeng Zhao said “The young demographic in India gives 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 centre to also spur cryptocurrency adoption throughout the larger public in the country.”

All said and done, WazirX’s integration into Binance will take some time and is mostly likely to be completed somewhere next year.

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