In a pivotal development for India’s troubled cryptocurrency exchange WazirX, more than 90% of its voting creditors have officially endorsed a proposed restructuring scheme aimed at reviving the company’s operations and stabilizing its financial health. The decision marks a major turning point for the exchange, which has faced intense regulatory pressure and liquidity issues over the past year.

Overwhelming Creditor Approval

According to documents released by the company’s resolution professionals, the restructuring plan received support from a wide majority of its creditors during the formal voting process. The approval rate surpassed the required threshold under India’s Insolvency and Bankruptcy Code (IBC), paving the way for implementation in the coming weeks.

“This is a significant vote of confidence in WazirX’s revival roadmap,” said a spokesperson for the restructuring committee. “Our goal is to protect the interests of all stakeholders, especially users whose assets were affected during the platform’s financial difficulties.”

Background: Trouble at the Exchange

WazirX, once one of India’s leading crypto trading platforms, ran into trouble following the global downturn in digital assets and increased scrutiny from Indian regulatory agencies. Investigations into alleged anti-money laundering violations and inconsistent compliance practices further strained the firm’s operations.

In late 2024, the exchange halted certain services and initiated talks with advisors to formulate a debt resolution plan. Several users and institutional partners reported withdrawal delays, prompting further criticism and calls for stricter oversight of crypto platforms in India.

Key Features of the Restructuring Scheme

The approved scheme reportedly includes the following measures:

• Capital infusion from external backers to restore liquidity and maintain solvency.

• Partial asset recovery program to prioritize small investors and retail traders.

• Internal governance reforms focused on compliance, transparency, and Know Your Customer (KYC) standards.

• Long-term repayment timelines for outstanding dues, negotiated with major institutional creditors.

• Reactivation of trading services in a phased manner, starting with select crypto pairs.

Industry insiders suggest that the restructuring plan is designed not just to salvage WazirX but also to set a new precedent for how digital asset platforms in India might handle financial crises under a semi-regulated environment.

Regulatory Oversight Continues

While the restructuring plan’s approval is a win for the exchange, WazirX is not completely out of regulatory crosshairs. The Enforcement Directorate (ED) and the Financial Intelligence Unit (FIU) continue to examine past transactions. The exchange’s leadership has committed to full cooperation with ongoing inquiries.

“We welcome the creditors’ support and are committed to earning back user trust,” said a senior executive at WazirX. “Our focus now is on compliance, transparency, and sustainable growth.”

A Cautious Path Forward

Crypto industry observers view this development as both promising and cautionary. While the vote signals renewed faith in WazirX’s future, broader concerns remain over regulatory clarity in India’s digital asset space.

“Restructuring is a start, not the end,” said Pooja Mehra, a fintech analyst. “WazirX’s journey from crisis to recovery could serve as a case study for the entire sector—if executed responsibly.”