Indian cryptocurrency exchange Mudrex temporarily halted crypto withdrawals, sparking a wave of response from its users.
Reasons for Halting Withdrawals
On January 11, Mudrex paused crypto withdrawals, leaving users puzzled. The company told Cointelegraph that the suspension is temporary and will last until January 28. This pause aims at upgrading the platform’s compliance framework to prevent misuse by malicious actors. Edul Patel, co-founder and CEO, emphasized, "With something as critical as crypto, if the infrastructure is not correct, it's easily misused for nefarious activities."
Community Backlash
The news gained traction after crypto trader Vivan Live posted on X, advising Mudrex users to withdraw funds immediately. He wrote, "Congratulations! Mudrex disables Crypto Withdrawals! Don’t tell me I didn’t warn you! If you haven’t withdrawn your funds yet, convert them to INR and run!" Another member, Aakash Athawasya, expressed skepticism, suggesting Mudrex never allowed crypto withdrawals in the first place and accused it of offering "price exposure, not ownership."
CoinDCX Introduces New Functionality
While Mudrex has put withdrawals on hold, another Indian exchange, CoinDCX, has introduced this feature. On January 6, CEO Sumit Gupta announced the first phase of crypto withdrawals would be available to 1.5 million users, with plans for broader access. However, users opting for this will have to disable their INR deposit functionality, though INR withdrawals will still be functional.
The Mudrex situation highlights the complexity and dynamics of crypto regulation in India. Other exchanges like CoinDCX are adapting by introducing new functionalities to stay competitive in this rapidly evolving space.
