Indian crypto exchange WazirX is set to reopen following a significant security breach earlier this year. Meanwhile, regulators across the globe continue to intensify oversight within the cryptocurrency sector, with the UK’s Financial Conduct Authority (FCA) initiating legal proceedings against HTX, a crypto platform linked to Justin Sun.
WazirX CEO Nischal Shetty confirmed on October 19 that the exchange would recommence trading on October 24. To encourage users back onto the platform, WazirX will offer zero-fee trading for the opening 30 days. The relaunch strategically starts with trading pairs involving the Indian rupee and stablecoins, beginning with Tether’s USD₮.
This development comes after the exchange was offline following a massive cyberattack last summer, when the Lazarus Group—an entity associated with North Korea—stole approximately $230 million in cryptocurrency from WazirX. Prior to the hack, WazirX managed roughly $500 million in assets, indicating almost half the funds were compromised during the incident.
The platform’s revival is part of a broader restructuring effort led by its parent company, Zettai, based in Singapore. This plan received official approval by the Singapore High Court in mid-October after earlier proposals were rejected. Despite progress, legal disputes persist; Indian crypto app CoinSwitch has filed a lawsuit against WazirX for failing to recover lost funds, with the Bombay High Court recently supporting CoinSwitch’s $5.4 million claim.
In the UK, the FCA has escalated actions against unauthorized crypto operators by suing HTX, formerly known as Huobi, on October 22. Heavily scrutinized by regulators, HTX is connected to Justin Sun, who is listed as a global adviser for the exchange. The FCA’s London High Court filing alleges that HTX violated the UK’s financial promotions regulations by operating without the necessary authorization.
The regulator framed this lawsuit as part of its ongoing efforts to protect UK consumers and uphold market integrity. HTX has yet to issue a public response regarding the legal challenge. This lawsuit comes amid a wave of FCA warnings and complaints targeting unregistered crypto platforms offering services within the UK market. Notably, the FCA recently reversed its ban on crypto exchange-traded notes, citing improvements and maturation in the crypto ecosystem.
Regulatory activity is also intensifying in Russia and the European Union. Reports indicate that Russia’s Ministry of Finance is preparing comprehensive new crypto regulations focused on regulating cross-border cryptocurrency payments. Finance Minister Anton Siluanov revealed these forthcoming measures after a government review, emphasizing concerns over crypto being used to move money offshore and facilitate imports. While Russia currently allows limited use of cryptocurrencies for import payments under a pilot regime, all other crypto transactions remain prohibited.
Concurrently, the European Union has moved to impose additional sanctions targeting Russian cryptocurrency exchanges. This action aligns with broader efforts to cut off channels through which Russia might circumvent international sanctions related to its ongoing conflict in Ukraine.
Despite the volatility and setbacks faced by various companies, Bitcoin (BTC) remains an increasingly popular treasury asset. In the United States, Hyperscale Data, a data services provider, dedicated $60 million of its balance sheet to Bitcoin holdings, signaling continued institutional interest.
As the global crypto landscape evolves, regulatory frameworks appear to be tightening, even as exchanges like WazirX strive to recover and resume normal operations.
