WazirX Reopens After Hack as FCA Cracks Down on Crypto

Indian cryptocurrency exchange WazirX has officially ended its more than year-long operational shutdown, marking a significant milestone in its recovery from a devastating 2024 security breach that forced the platform to suspend all trading activities. The massive hack, which occurred in 2024, prompted the exchange to implement comprehensive security overhauls and regulatory compliance measures during its extended downtime. The reopening represents a critical test for the platform’s ability to regain user trust and market position following one of the most significant security incidents in India’s crypto history.

The decision to resume operations comes after extensive internal reviews and security upgrades aimed at preventing future breaches. While the specific details of the 2024 hack’s impact on user funds and platform stability were not disclosed in the source material, the year-long shutdown indicates the severity of the security compromise and the complexity of the recovery process. The reopening positions WazirX to re-enter India’s growing cryptocurrency market at a time when regulatory scrutiny is intensifying globally, creating both opportunities and challenges for the returning exchange.

Across international borders, the UK’s Financial Conduct Authority is dramatically escalating its regulatory enforcement against cryptocurrency exchanges operating without proper registration. The FCA has issued hundreds of formal warnings to unregistered crypto platforms, reflecting a systematic crackdown on non-compliant operators in the British market. This aggressive stance represents one of the most comprehensive regulatory actions taken by a major financial authority against the cryptocurrency sector, signaling a new era of heightened oversight.

Among the prominent exchanges targeted by the FCA’s enforcement actions is HTX, the platform associated with cryptocurrency entrepreneur Justin Sun. The inclusion of HTX in the FCA’s warning list highlights the regulator’s commitment to applying consistent standards regardless of an exchange’s market prominence or leadership. The hundreds of warnings issued demonstrate the scale of non-compliance within the UK crypto market and the FCA’s determination to bring all digital asset trading platforms under its regulatory umbrella, creating significant operational challenges for exchanges that have previously operated with minimal oversight.

The simultaneous developments in India, the UK, and Russia illustrate a coordinated global trend toward stricter cryptocurrency regulation. While WazirX works to rebuild following its security crisis and the FCA pursues enforcement actions, Russia’s finance ministry is reportedly preparing to introduce additional regulatory measures for the crypto industry. This three-pronged regulatory movement across major economies indicates a fundamental shift in how governments approach digital asset oversight, moving from passive observation to active intervention.

The convergence of these regulatory actions creates a challenging environment for cryptocurrency exchanges operating across multiple jurisdictions. Platforms must now navigate varying compliance requirements while maintaining security standards in the face of sophisticated cyber threats. The FCA’s targeting of HTX, coupled with WazirX’s security-driven shutdown and Russia’s planned regulatory expansion, suggests that 2024 may represent a turning point in the relationship between cryptocurrency exchanges and financial regulators worldwide, with implications for market structure, investor protection, and the future development of digital asset trading.