The cryptocurrency ecosystem in India is about to change, and that is all thanks to Binance. That is, India will experience a transformation in their crypto space as a result of Binance who recently made the move to acquire WazirX.
Binance and the Indian Market
Binance is a global cryptocurrency exchange firm, and they have taken a significant move by acquiring the Indian company. According to sources close to the companies, the whole deal is estimated to have cost between $5-10 million.
When looking at the cryptocurrency environment, many exchanges have been closing down over the last few years due to the lack of the right regulations. As a result of this, this is the first significant acquisition in this space, which will give Binance a strong foothold in the Indian market, recognized as one of the leading exchanges globally.
According to reports by Economic Times, WazirX is a firm that had just started its global operations this year, and it has been working in crypto-crypto and peer-to-peer types of transactions.
WazirX and Binance
Here is how the whole acquisition is going to work. Binance will integrate the peer-to-peer(P2P) engine from WazirX into their system, which is a Fiat Gateway platform, during the first quarter of 2020. As a result of this, it will give users the ability to trade on the digital assets from Binance by simply purchasing Tether or USDT. Tether is a blockchain digital currency from the WazirX peer-to-peer market.
Binance CEO, Changpeng Zhao, stated that the Indian market is made up of a young demography, which will play an important role in giving them the edge to adopt and build on new financial technologies. He went on to say that the recent acquisition will contribute to making India an international blockchain innovation center. As a result, it will be easier to encourage the adoption of cryptocurrencies across the country.
Zhao told the Economic Times that India is about to become one of their first projects that will be key in stimulating financial growth that will also lead to access and development of other nations that are beyond this country. He further added that they will continue to work in encouraging further crypto adoption as well as lower the entry barrier. One of Binance’s main goals is to add more fiat currencies to their exchange and to also work with other local partners in a move to have more fiat-to-crypto- pairs available to the public.
The Benefits of the Acquisition
The recent acquisition comes with many advantages for Indian users. With this new move, the Indian public will be able to comfortably either buy or sell crypto using their Indian currencies on the Binance Fiat Gateway, which offers convenience and flexibility. In addition, for now, WazirX will continue to be independently run by its founder, Nischal Shetty, in India.
Shetty commented that the acquisition is an ideal arrangement as it will assist them to expand their P2P business, in terms of geography, very quickly. He further stated that the next phase towards mass adoption will be a reach out to other developing countries as well as a billion people in India. The end result will hopefully be massive cryptocurrency adoption around the world.