• WazirX is preparing to launch decentralized exchanges

  • WazirX, an Indian cryptocurrency exchange, has recently seen a significant increase in volume. According to reports, the exchange has grown to become the largest decentralized exchange in terms of volume. The platform’s popularity has prompted the creators to consider the next step.

    According to recent reports, Nischal Shetty, the co-founder of WazirX, has revealed that the company is planning to launch a decentralized exchange.

    Customers’ operations are managed by a centralized cryptocurrency exchange. A decentralized cryptocurrency exchange, in contrast to a centralized setup, operates without the use of a custodian or an intermediary. The trades are carried out on a self-executing basis, primarily through smart contracts. WazirX is currently testing decentralized exchange features and other features in preparation for its launch next month.

    Because the decentralized exchange (DEX) does not own data, even regulators cannot approach the exchange’s programmer and request data, according to Shetty on data availability visible to all.

    In June 2021, the Enforcement Director asked WazirX to explain a transaction worth Rs. 2,790.74 crore violated foreign exchange rules. According to reports, the exchange is preparing a response that will look into money laundering.

    DEXs, according to several industry and legal experts, are less legally policed and provide more transparency. As a result, the chances of price manipulation and hacking are significantly reduced.

    Decentralized exchanges, according to Mathew Chacko (a Spice Route Legal partner), faceless policing from authorities. As a result, they are the preferred mode for those seeking more transparent trades. From a global legal standpoint, he added, decentralized exchanges have fewer legal problems than centralized ones.

    Decentralized exchanges do not necessitate a checklist like Know Your Customer (KYC). It is one of the most practical types of exchanges where global traders can easily trade without much difficulty. All of this has increased the popularity of decentralized exchanges around the world.

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