WazirX Reopens with Zero Fees After Year-Long Closure

WazirX, India’s crypto exchange, will resume operations on October 24 with zero transaction fees after a year-long closure following a $230 million hack, as per court-approved restructuring.

The reopening marks a critical step in restoring trust and stability in India’s cryptocurrency market, with impacts on trading dynamics and user engagement anticipated.

User Trust and Regulatory Implications in Spotlight

WazirX’s official channels, including Twitter and Telegram, announced the restart, receiving user anticipation and inquiries about security. WazirX founder, Nischal Shetty, emphasized speedy efforts to ensure a smooth process, stating:

Key changes include zero transaction fees at launch and initial trading for USDT/INR and select crypto markets. Part of the reopening strategy involves issuing Recovery Tokens, signifying the start of user compensation. BitGo, a U.S.-based custodian, partnered with WazirX to enhance asset security.

“The team is working at full speed to make this happen and aims to resume even sooner if possible.”

Market Data and Future Implications

Did you know? The recovery process of WazirX mirrors those of past exchange hacks, like Mt. Gox, where multi-year repayment plans were crucial in regaining community trust and operational stability.

According to CoinMarketCap, Tether USDt is trading at $1.00 with a circulating supply of 182.50 billion. Its 24-hour trading volume hit $152 billion, marking a 19.52% decrease. Price remained stable, with a small dip of 0.05% over the last 24 hours.

Analysts from Coincu suggest that WazirX’s relaunch could catalyze further regulatory scrutiny in both India and Singapore. Recovery Token buybacks funded by platform revenue might provide new business models for distressed exchanges. Historical precedents emphasize the importance of user trust restoration.