Indian cryptocurrency exchange Mudrex recently halted crypto withdrawals, leading to widespread concern among its users. This temporary suspension, effective from January 11 to January 28, is due to an upgrade in the platform’s compliance framework to safeguard against potential misuse. Edul Patel, co-founder and CEO of Mudrex, stressed the necessity of such measures to maintain the integrity of their infrastructure and services.
Mudrex stands out as one of the few Indian exchanges facilitating crypto withdrawals, a service it has consistently provided over the past three and a half years. Despite the company’s explanation, the move sparked backlash within the crypto community. A crypto trader known as Vivan Live advised Mudrex users to withdraw their funds promptly, warning that the pause could indicate deeper issues. Another critic, Aakash Athawasya, voiced skepticism about the exchange’s transparency, suggesting its crypto offerings may not have functioned as advertised.
Amidst these tensions, Mudrex continues to experience significant growth, reporting a 200% increase in its user base, which now exceeds three million, and a remarkable spike in trading volume in December. At the same time, regulatory scrutiny in India is intensifying, causing other exchanges like Bybit to suspend operations temporarily due to evolving regulations.
Meanwhile, Indian crypto exchange CoinDCX has introduced a crypto withdrawal function, initially accessible to 1.5 million users. However, users opting for this feature will be required to permanently disable their Indian rupee deposit capabilities, although INR withdrawals will still be possible.
