WazirX

Dipping your toes into the crypto waters in India often leads straight to WazirX's doorstep. With its straightforward interface and considerable trading volume, this exchange has become a go-to option for many Indian crypto enthusiasts. But before you jump in, let's look at what WazirX really offers, where it stands after some serious challenges, and whether it deserves your trust.

The Rise and Regulatory Journey of WazirX

WazirX made headlines in March 2023 when it became one of the first Indian crypto exchanges to register with India's Financial Intelligence Unit (FIU) under the Prevention of Money Laundering Act (PMLA) regulations. This wasn't just a checkbox exercise – the platform had been implementing AML/CFT measures in anticipation of these regulations, including transaction monitoring and TDS compliance.

I remember watching this development with interest. The crypto space in India has always existed in a regulatory gray area, and seeing WazirX take proactive steps gave many users (myself included) a sense that they were serious about legitimacy in a market where many competitors operate from offshore to avoid regulatory oversight.

The July 2024 Hack: A Devastating Blow

Just when things were looking up, disaster struck. In July 2024, WazirX suffered a catastrophic $234.9 million hack attributed to North Korea's notorious Lazarus Group. The attackers exploited a vulnerability in a multi-signature wallet, making off with approximately 50% of the exchange's reserves.

The aftermath wasn't pretty. Trading operations were immediately suspended, and users found themselves in limbo. By August-September 2024, 34% of user INR balances were frozen due to ongoing investigations, with withdrawals limited to only 66% of funds.

"This reminds me of when Mt. Gox collapsed years ago," a fellow trader told me. "You never think it'll happen to your exchange until it does."

The Road to Recovery: Restructuring and User Compensation

Following the hack, WazirX didn't just fold and disappear (which, let's be honest, has happened with other exchanges). Instead, they proposed a creditor restructuring plan in February 2025. The plan offers users two paths: approve the restructuring and receive refunds via recovery tokens starting April 2025, or reject it and trigger liquidation proceedings that could drag on until 2030.

Singapore courts approved WazirX's moratorium application in January 2025, giving the exchange breathing room to negotiate with creditors. Meanwhile, investigations revealed the hackers had laundered stolen funds through Tornado Cash, making recovery efforts particularly challenging.

The situation got messier when CoinSwitch filed a lawsuit against WazirX in August 2024, claiming $9.65 million in trapped funds following the hack. This legal battle underscores the interconnected nature of crypto exchanges and the domino effect that security breaches can have.

Trading on WazirX: Fees and Features

For those still using the platform or considering it, WazirX's fee structure is relatively competitive. The exchange uses a tiered maker/taker fee system ranging from 0.10% to 0.40% based on 30-day trading volume and WRX token holdings.

A trader who shared his experience on YouTube praised the fee structure but noted some limitations: "The 0.2% maker/taker fees can be reduced by 50% when paying with WRX tokens, which is great. But be careful with their 'rapid listing initiative' - some tokens can be traded but not deposited or withdrawn directly."

For withdrawals, WazirX charges specific fees: 25 INR for instant withdrawals and 15 INR for NEFT transfers. Daily INR withdrawal limits are set at ₹5 lakh for instant withdrawals, with no limit for standard transactions.

User Verification and Account Security

If there's one thing WazirX doesn't mess around with, it's KYC verification. This is mandatory for withdrawals, requiring matching bank account names and a minimum ₹1000 deposit via IMPS/NEFT/RTGS.

The platform's stance on name mismatches is particularly strict – zero tolerance with automatic rejection of mismatched withdrawal requests. While this might seem annoying if you're trying to withdraw to someone else's account, it's actually a solid security measure.

Crypto withdrawal limits are capped at 3 BTC daily for verified users, though users can upgrade their KYC status to access higher thresholds. Each withdrawal requires network-specific address validation – another security measure that helps prevent sending your precious crypto into the void.

Banking Integration and Deposit Methods

Unlike some international exchanges, WazirX keeps it simple with deposits. Bank transfers are the only supported fiat deposit method, with a minimum order size of 50 INR across all cryptocurrencies. The exchange supports transactions from major Indian banks including Punjab National Bank and IDFC First Bank.

One unique feature that users consistently highlight is WazirX's integration with Binance. A trader demonstrating this connection explained: "The seamless integration between WazirX and Binance accounts offers zero-fee transfers between platforms when using the same email address. This is particularly useful for arbitrage opportunities."

P2P Trading Experience

For those exploring peer-to-peer trading, WazirX offers a structured but somewhat restricted system. An experienced user shared: "While initial P2P trading limits are restricted to 16 USDT for new users, these limits disappear after successful transactions. Just be extremely careful about exact payment amounts and the strict 10-minute payment window."

Looking Forward: Trust Rebuilding and Market Position

The true test for WazirX lies ahead – can it rebuild trust after losing half its reserves? Prior to the hack, a June 2024 proof-of-reserves audit showed $500 million in holdings, but that credibility was severely undermined by subsequent events.

WazirX now faces competition not just from other Indian exchanges but from offshore platforms like Binance and KuCoin, despite these being technically banned in India due to non-compliance with local regulations.

The crypto landscape in India remains challenging, with regulatory uncertainty still looming large. WazirX's registration with the FIU was a step in the right direction, but the hack has undoubtedly set back progress for the entire Indian crypto ecosystem.

As one analyst put it, "WazirX's recovery journey will be watched closely – it could either become a case study in resilience or a cautionary tale about security vulnerabilities in even the most established exchanges."