Mudrex, an Indian cryptocurrency exchange, recently halted crypto withdrawals, causing confusion and frustration among users. The suspension, announced on January 11, will last until January 28.
Mudrex stated that the pause is necessary to enhance the platform’s systems and prevent misuse by malicious actors. CEO Edul Patel emphasized the importance of ensuring security when handling crypto to avoid illegal activities. Despite being one of the few exchanges in India allowing withdrawals for over three years, this decision has upset many users.
India is tightening regulations on cryptocurrency exchanges, leading some platforms to limit their services. For instance, Bybit announced on January 12 that it would reduce trading and account creation due to these new rules.
In contrast, CoinDCX, another prominent exchange, began allowing crypto withdrawals on January 6. They plan to enable 1.5 million users to withdraw crypto in the first phase, intending to expand later. However, users must disable their option to deposit Indian rupees (INR) to withdraw crypto, although INR withdrawals remain available.
Mudrex’s choice to suspend withdrawals highlights the challenges faced by crypto exchanges in India amid increasing regulations. As the company works on system improvements, it remains to be seen how this decision will impact its reputation and user trust.
The situation reflects the broader struggle of exchanges to navigate a rapidly changing regulatory landscape while maintaining user satisfaction and security.
