Indian cryptocurrency exchange Mudrex has temporarily halted crypto withdrawals, sparking outrage within the crypto community. The suspension, announced on Jan. 11, left many users confused and concerned.
Mudrex clarified that the pause would last until Jan. 28 and was part of an upgrade to the platform’s compliance framework, aiming to prevent misuse by bad actors.
Edul Patel, Mudrex’s co-founder and CEO, defended the decision, emphasizing the importance of a robust infrastructure to avoid crypto being misused. “As a responsible platform, we must ensure that our systems are secure and continuously improve services,” Patel stated.
The move has caused a backlash. Crypto trader Vivan Live urged users to withdraw funds immediately, warning them to convert crypto into INR and withdraw to avoid potential problems. Other users, like Aakash Athawasya, expressed doubt, accusing Mudrex of offering “price exposure” rather than true crypto ownership.
Mudrex has seen impressive growth, with a 200% increase in its user base and a 20-fold rise in December’s trading volume to $200 million. However, the decision comes at a time when India is tightening crypto regulations. Bybit also suspended services in India on Jan. 12 due to regulatory pressures.
Meanwhile, CoinDCX, another Indian exchange, has introduced crypto withdrawals. Starting Jan. 6, users can access the feature, but it comes with the caveat of disabling INR deposit functionality.
Also Read: Portugal’s BiG Bank Halts Fiat Payments to Crypto Platforms
