Tag: WazirX

The Top 10 Cryptocurrency Terms Every Serious Investor Must Know

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Cryptocurrencies can be overwhelming if you suddenly start to read about them, especially technical terminologies. A lot of newbies ponder about some of the most commonly-used terms in the crypto world and start to feel left out when they can’t figure out what they mean. Worry not, as we’ve rounded up the top 10 crypto lingosthat every cryptocurrency investor is most likely to encounter on their wondrous journey through this exciting new technology.

Here they are, in no particular order.

1.Decentralized finance (DeFi)

DeFi (which also sounds like defy) is a blanket term used to describe decentralized alternatives to traditional finance systems. It encompasses centralized finance and other aspects of banking such as money management, payment processing, insurance, etc. DeFi is meant to give access to these traditionally exclusive systems to opening them up to the public in a democratic manner without having intermediaries such as brokerages, exchanges, or banks.

2. Mining

In the crypto world, mining refers to the process of creating new bitcoins. While mining, new cryptocurrencies are produced, somewhat like finding gold or diamonds while mining for it. Unlike gold or diamonds, crypto mining is done by solving computational math problems, thereby making the bitcoin payment network trustworthy and secure by verifying its transaction information.

3. Non-fungible tokens (NFTs)

If there’s one word that’s been buzzing through 2021, it’s NFTs. Non-fungible tokens, or NFTs, enable virtual transactions between collectibles like art, music, and trading cards using smart contracts. When someone buys an NFT, they receive a certificate secured in Blockchain technology, making them the owner of that specific digital asset. NFTs are non-replicable and can only have one official owner at a time.

4. Satoshi Nakamoto

Satoshi Nakamoto is an individual, or group of individuals, credited with founding the world’s first cryptocurrency, Bitcoin. While many attempts have been made, the founder of Bitcoin remains completely anonymous to this day. On the other hand, if you hear the word ‘satoshis’, it can mean something completely different. ‘Satoshis’ refers to a fractional unit of Bitcoin that you can transact with, say 0.05 bitcoin for example.

5. Private Key

A Private Key is your password that consists of a very important string of numbers and letters you should not share with anyone. If someone is able to access your Private Key, you could lose all your funds in a matter of seconds. This key is also necessary to verify transactions when selling or withdrawing your crypto assets. Just as important as it is not to share your Private Key, it’s also important to not forget them.

6. ICO

ICO is an acronym for “Initial Coin Offering”. It usually occurs when the creator of a new cryptocurrency puts up an initial batch of its coins for purchase. It’s pretty much the same thing as an IPO that lists on stock exchanges, but in a crypto environment. Since everyone can participate in ICOs, it’s important to keep an eye out for upcoming cryptocurrencies that have the potential to become huge.

7. Blockchain

Blockchain is a fundamental aspect of the crypto world and refers to the digital ledger of all the transactions ever made in a particular cryptocurrency. It differentiates cryptocurrencies from other currencies by making the transaction public to everyone on the blockchain. Every transaction made on a blockchain is saved onto thousands of computers all around the world, and it must always match to ensure there is no double-spending.

8. ERC20

ERC20 is a scripting standard used within the Ethereum blockchain that dictates a number of rules and actions that an Ethereum token or smart contract must follow and steps to be able to implement it. ERC is an acronym for “Ethereum Request for Comment”, and the ERC20 standard has been in use since 2015. ERC20 is exclusively used on the Ethereum platform. There are quite a few crypto projects built using the ERC20 framework.

Some of these include Tether, Binance Coin, Chainlink, Dai, Wrapped Bitcoin among others. As of December 2020, there are 829 projects based on the ERC20 framework, according to Ethereum data provider Etherscan.

9. PoS vs PoW

PoS and PoW are terms that are used to create blockchains through common agreement. PoS stands for Proof of Stake that is used to scale up transactions involving large blockchains without running up a huge electricity bill. PoW, which stands for Proof of Work, is a decentralized consensus mechanism that requires members of a

given blockchain to solve an arbitrary mathematical puzzle and earn cryptocurrency for their effort.

Both proof-of-work and proof-of-stake are what are called “consensus mechanisms,” the method by which a blockchain maintains its integrity. Proof of Stake was created as an alternative to Proof of Work, which is the original consensus algorithm in Blockchain technology, used to confirm transactions and add new blocks to the chain.

10. Sharding

Sharding refers to the practice of splitting up the entire blockchain history so that each node doesn’t generate a complete copy of it. Sharding is considered as a scaling solution for blockchains, especially the larger ones that begin to slow down the network performance as it tries to carry out the entire blockchain.

Now that you know the most important words in cryptocurrency, which one were you most surprised to learn about?

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WazirX says yet to receive ED notice alleging FEMA violations

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Cryptocurrency trading platform WazirX has said that it is yet to receive the Enforcement Directorate’s show-cause notice which alleges FEMA violations.

In a statement released just a while back, WazirX has also said that it is in compliance with all applicable laws.

“We go beyond our legal obligations by following Know Your Customer (KYC) and Anti Money Laundering (AML) processes and have always provided information to law enforcement authorities whenever required,” the statement elaborates.

WazirX has also said that it can trace all users on its platform with official identity information.

Further, the trading platform has assured cooperation with the investigating agency.

“Should we receive a formal communication or notice from the ED, we’ll fully cooperate in the investigation,” the statement reads.

Earlier in the day, the Enforcement Directorate tweeted that it had issued a show-cause notice to WazirX for contravention of FEMA, 1999 for transactions involving cryptocurrencies worth Rs 2,790.74 crore.

The agency issued a statement saying that it stumbled upon the transactions of the company during an ongoing money laundering probe into the ”Chinese-owned” illegal online betting applications.

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ED issues show-cause notice to WazirX for transactions involving cryptocurrencies worth Rs 2,790 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Enforcement Directorate (ED) has issued a show-cause notice to WazirX cryptocurrency exchange for contravention of the Foreign Exchange Management Act (FEMA), 1999 for transactions involving cryptocurrencies worth Rs 2,790.74 crore.

ED has issued Show Cause Notice to WazirX Crypto-currency Exchange for contravention of FEMA, 1999 for transactions involving crypto-currencies worth Rs. 2790.74 Crore.

— ED (@dir_ed) June 11, 2021

WazirX, registered under the company named Zanmai Labs Pvt Ltd, was incorporated in December, 2017 as a domestic cryptocurrency star-tup and its directors Nischal Shetty and Hanuman Mhatre, along with the company, have been named in the notice issued by the central probe agency after completion of an investigation.

The agency issued a statement saying that it stumbled upon the transactions of the company during an ongoing money laundering probe into the ”Chinese-owned” illegal online betting applications.

”It was seen that the accused Chinese nationals had laundered proceeds of crime worth about Rs 57 crore by converting Indian Rupee (INR) deposits into cryptocurrency tether (USDT) and then transferred it to Binance (exchange registered in the Cayman Islands) Wallets based on instructions received from abroad,” it said.

Binance is considered a market leader in this domain and had acquired WazirX in 2019.

According to Sonam Chandwani, the Managing Partner at KS Legal & Associates, the ED’s issuance of a show-cause notice to WazirX on the basis of an ongoing money laundering probe sets a stringent tone for those exploiting the crypto market for malafide purposes.

“Despite inadequate existing crypto laws, ED’s money laundering probe is likely to deter those freeballing and evading laws through the crypto market. While banks are required to maintain thorough documentation, WazirX failed to collect requisite documents which is a blatant violation of Anti Money Laundering laws and FEMA guidelines. Therefore, a robust mechanism that addresses novel crimes and safeguards investor interests is the need of the hour, or else crypto exchanges would soon be labelled as a virtual safe haven for money laundering and other illegitimate activities,” Chandwani said.

-With PTI inputs

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WazirX launches India’s first NFT marketplace

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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WazirX, India’s largest cryptocurrency exchange, announced the launch of India’s first Non-Fungible Tokens (NFTs) on Tuesday. The platform will feature exclusive artwork from artists, photographers, and media professionals from India and some South African nations.

NFT is a digital asset, representing real-world objects like art, music, and videos. These can be bought and sold online with cryptocurrency and are encoded with the same software as many digital coins.

WazirX will mint the NFTs on its parent company Binance’s technology—one of the largest crypto exchanges in the world. Binance acquired WazirX in 2019.

The non-fungible tokens will have no listing price, but a minimal gas fee of $1 for transactions, Mint reported.

Till now, WazirX’s NFT marketplace has 15 creators, with 15000 applications in line already. Artists like Vimal Chandran (visual artist), Sneha Chakraborty (wall mural artist), Ishita Banerjee (media artist), among others will feature on the marketplace.

The collectors can purchase NFTs via WazirX through its native token WRX. Moreover, it will not take bids for the pieces on sale for now and will go ahead with the ‘fixed price sale’ concept. However, the tokens can be later transferred to a different blockchain, like Ethereum.

WazirX will charge a 5 percent service fee on each sale, with the creators getting 95 percent of the sale proceeds, ET reported.

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WazirX caught in a bind as banks withdraw support

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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One of the biggest cryptocurrency exchanges in India, WazirX, has announced that its Paytm Payments bank account will no longer remain operational, meaning the users won’t be able to carry out transactions on its platform through the bank transfer option for the time being.

WazirX said that starting at 11:59 pm on May 20, 2021, INR or Indian Rupee deposits to the Paytm Bank account will not be accepted. In a statement issued for its users, WazirX said, “The bank transfer option using NEFT or IMPS from a bank account remains unavailable. We recommend to opt for WazirX P2P to buy/sell USDT with INR till another payment bank is brought in”.

The bank transfer option for cryptocurrency transactions on WazirX will remain suspended till it finds a new banking partner.

“We’re at the finishing stages to add new banking partners and bringing in multiple INR deposit options for our users to deposit funds to WazirX wallet. We’ll update you as soon as we’ve added them. Thank you for your support.” informed Wazirx in a tweet.

This comes after the Paytm Payments bank announced to stop cryptocurrency transactions from Friday evening. Several banks on Thursday also said that they would no longer deal with crypto exchanges following an ‘informal order’ from the Reserve Bank of India to that effect.

WazirX is not alone to face such a problem; other crypto exchanges like CoinSwitch Kuber and CoinDCX are also not able to allow UPI payments option for users after the banks and Paytm Payments bank withdrew the transaction facilities.

With the Ministry of Finance exploring options to regulate cryptocurrency transactions in India, apps such as WazirX, CoinSwitch Kuber and CoinDCX are finding it quite troublesome to offer the Unified Payments Interface (UPI) for its users.

The National Payments Corporation of India (NPCI), which operates the UPI real-time payments system, earlier this month refused to ban cryptocurrency transactions in India using UPI  and asked the banks to check with their legal and compliance department for necessary steps.

It is now up to the banks to either formulate their own guidelines or wait for the policy from RBI and the Ministry of Finance.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Crypto sell-off: Crucial to see where is market headed, says WazirX

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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There was a massive sell-off in cryptocurrencies yesterday led by a 30 percent drop in bitcoin, which hit the lowest level in three and a half months. Nischal Shetty, Founder & CEO of Wazir-X, shared his views.

“There is panic selling. For those who entered the market anytime in 2020, it is seen as a time to book some profits. There have been people who have been entering the ecosystem in the last two three months for whom this looks to be a buying opportunity that they were waiting for on the sidelines,” he said.

“This kind of traffic is unprecedented in any of the financial products out there. So interesting time overall and it is going to be important and crucial to see where the market goes in the next couple of weeks to understand whether we are going into a downturn or this is more of a temporary blip before the higher peak,” he added.

For the full interview, watch the accompanying video

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Crypto platform WazirX crashes due to Dogecoin frenzy

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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WazirX, one of India’s largest cryptocurrency trading platforms crashed for about an hour on May 4, 2021 due to a spike in Dogecoin’s price, resulting in frenzied trading.

Dogecoin, originally started as a joke in response to a meme about dogs, was popularised by Tesla CEO Elon Musk when he repeatedly tweeted about it.

From 8 pm or so on Tuesday, users complained on Twitter about WazirX not working. However CEO Nischal Shetty told Moneycontrol that the website and app are back to normal now and that it was down for about 45 minutes to an hour.

“What happened is that a ton of people suddenly came up because of the Dogecoin activity. Some of our systems thought it was an attack, and thus ended up preventing some people from accessing the platform,” he said.

Some people weren’t able to access their accounts at all, while others saw a delay in trades getting executed.

“Normally we have tens of thousands of people signing up every day. Today that doubled. And active traders have also increased by 70 percent,” Shetty said. However, he clarified that the crash was due to the system reacting as a security measure, and not because its servers could not handle the load. He did not specify the number of users who have signed up.

Dogecoin was created as a joke in 2013 by software engineers Billy Markus and Jackson Palmer and was never meant to be a serious cryptocurrency. However, it has risen in popularity due to celebrities such as Musk talking about it on social media. Dogecoin is currently trading at about USD 0.5 a coin, it’s all-time high price.

Also Read: Should you invest in dogecoin? Here’s what experts think

The spike in price and WazirX’s crash also comes at a time when cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin have become hotter than ever globally after crypto platform Coinbase went public on Wall Street at a USD 100 billion valuation. This was seen as a sign of legitimacy by industry insiders and outside investors like.

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow