In a major development that could shape the future of WazirX’s user repayment and restructuring efforts, a recent affidavit filed by WazirX co-founder Nischal Shetty has brought critical clarity to several legal and regulatory questions surrounding the platform’s Singapore-based entity, Zettai Pte Ltd.
The affidavit, submitted to the Singapore High Court, forms part of the ongoing Scheme of Arrangement initiated after the cyberattack in 2024. The affidavit addresses objections raised by dissenting creditors while also presenting crucial regulatory feedback from Singapore’s financial authorities.
MAS Confirms Zettai NOT in Violation of FSMA
One of the most significant revelations from the affidavit is a clarification from the Monetary Authority of Singapore (MAS), stating that Zettai is not in breach of the Financial Services and Markets Act (FSMA). MAS confirmed that a one-time crypto distribution, as proposed in the Scheme, does not constitute a regulated financial service requiring licensing.
The affidavit includes direct correspondence from MAS, which states that since Zettai is NOT actively soliciting the public or offering ongoing crypto services, its actions fall outside the scope of licensing under FSMA.
This clarification is seen as a major win for WazirX and could help ease concerns among users and the court regarding the legality of the proposed distribution.
Clear and Compliant Separation Zettai and Zanmai
The affidavit strongly reinforces the well-structured and compliant separation between Zettai Pte Ltd (Singapore) and Zanmai Labs Pvt Ltd (India). This key distinction underpins the legality of the restructuring process.
Zanmai Labs, which previously facilitated INR-crypto transactions for Indian users, operated under full Indian regulatory oversight, adhering to KYC norms, tax obligations, and compliance protocols. On the other hand, Zettai is a crypto-only entity registered in Singapore, with a narrowly defined scope focused on non-INR, crypto-to-crypto operations.
Importantly, the affidavit clarifies that Zettai does not service INR markets, nor does it actively solicit users in India — a position that is fully aligned with the legal framework in both jurisdictions. This structured separation helps ensure that Zettai operates within the bounds of Singapore law, while also respecting the regulatory domain of Indian authorities.
By proactively designing this dual-entity structure, WazirX has demonstrated foresight and regulatory discipline, ensuring the restructuring process remains jurisdictionally clean, transparent, and focused solely on compensating affected users through a legal and compliant pathway.
MAS Has No Objection to the Restructuring
In addition to clarifying Zettai’s legal status, the affidavit confirms that MAS has no objection to the court-sanctioned restructuring proposal. MAS acknowledged being informed about Zettai’s intentions and explicitly stated that no further licensing is needed for the proposed crypto distribution.
This assurance from Singapore’s central authority strengthens the legitimacy of the restructuring plan.
Responding to Objections and Reaffirming User Focus
The affidavit also responds directly to several objections filed by dissenting users. It refutes allegations of regulatory violations, clarifies that no promoter will benefit financially from the Scheme, and reiterates that all future revenues will be directed toward compensating affected users.
The filing asserts that the Scheme is being pursued solely to ensure a structured and fair payout for impacted users, and not to benefit company insiders.
The court’s decision on this affidavit — and the eventual creditor vote — could mark a defining moment for WazirX’s comeback. For now, the regulatory clarity from MAS and the platform’s reaffirmation of its pro-user approach may provide the momentum needed for the restructuring plan to gain broader support.
