Indian cryptocurrency exchange Mudrex has temporarily halted crypto withdrawals, sparking criticism from its user base and the broader crypto community.
On Jan. 11, Mudrex paused crypto withdrawals, citing the need to upgrade its compliance framework to prevent misuse by bad actors. The suspension is set to last until Jan. 28, during which the platform aims to enhance its systems for improved security and regulatory compliance. Mudrex co-founder and CEO Edul Patel emphasized the importance of robust infrastructure to avoid exploitation for illicit activities.
The suspension began on Jan. 11 and is expected to end on Jan. 28, 2025. The issue affects Mudrex users in India, where the platform is one of the few exchanges that allow crypto withdrawals.
Mudrex stated that the pause is necessary to align its compliance framework with evolving regulatory requirements and to ensure the safety of user funds. However, the abrupt decision has raised concerns and skepticism within the crypto community. Critics have questioned the transparency and timing of the move, with some alleging that the platform never offered true crypto withdrawals but rather price exposure to cryptocurrencies.
The controversy gained traction after a crypto trader, Vivan Live, warned users on X to withdraw funds immediately, sparking debates about Mudrex’s intentions. Another user, Aakash Athawasya, accused the platform of misleading practices, claiming it did not provide true crypto ownership.
Meanwhile, rival exchange CoinDCX recently launched crypto withdrawal functionality on Jan. 6, granting access to 1.5 million users in the first phase of its rollout. However, users opting for crypto withdrawals must permanently disable Indian rupee deposit functionality, raising its own set of concerns.
Mudrex’s temporary suspension highlights the ongoing challenges faced by Indian crypto platforms in navigating compliance while maintaining user trust. As the situation unfolds, the response from Mudrex and its ability to restore services seamlessly will play a crucial role in determining its reputation in the competitive Indian crypto market.
