Indian cryptocurrency exchange WazirX has announced that it is shutting down its non-fungible tokens (NFT) marketplace due to a lack of traction, amid high taxes, regulatory uncertainties, and global market volatility. The exchange has already lost over 90% of its trading volumes since the implementation of a 30% income tax on profits and a 1% TDS on all virtual digital asset (VDA) transactions last year.
WazirX NFT marketplace: a brief history
Launched in 2021, the WazirX NFT marketplace aimed to facilitate the exchange of digital assets and intellectual properties such as art pieces, audio files, videos, programmes, and tweets, among other digital goods and services.
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“We regret to announce that the WazirX NFT Marketplace has been sunsetted. We are proud to have launched India’s first NFT Marketplace in June 2021, which showcased the work of many creators. Unfortunately, it did not gain much traction,” said a company spokesperson in a statement.
Users can continue to hold their NFTs in their wallets and sell them on other marketplaces, such as OpenSea.
Many users are worried that the exchange could be next to shut down, given the current situation. However, there is no confirmation regarding the matter. It is possible that the NFT marketplace is facing some technical issues and will be back online soon.
Binance’s influence on WazirX
WazirX previously had a feud over whether Binance, the world’s largest exchange, owned the platform. The Indian exchange was thought to have been purchased by the crypto giant in 2019. Changpeng Zhao (CZ), the CEO of Binance, claimed that the deal was never finalized.
Binance urged Zanmai Labs, the company in charge of WazirX, to withdraw assets that were now kept in Binance wallets. Binance’s move followed fear among users regarding their funds.
