tl;dr
Indian cryptocurrency exchange Mudrex has temporarily halted crypto withdrawals to upgrade its compliance suite and maintain security standards. This decision has faced backlash within the crypto community, with some users advising others to remove their funds from the platform. Mudrex's founder def...
Indian cryptocurrency exchange Mudrex has temporarily halted crypto withdrawals to upgrade its compliance suite and maintain security standards. This decision has faced backlash within the crypto community, with some users advising others to remove their funds from the platform. Mudrex's founder defended the decision, citing the company's support for crypto deposits and withdrawals. The exchange's growth and regulatory pressures, including restrictions on services by another exchange, Bybit, in India, have contributed to the situation. India, despite ranking high in the 2024 Crypto Adoption Index, maintains high levies on digital assets. In a January 12 announcement, Mudrex stated, “To enhance the security of our platform and safeguard against bad actors, we have made the decision to temporarily pause crypto withdrawals till January 28th, 2025.” Mudrex also reassured users that INR withdrawals remain unaffected, crypto deposits are fully functional, and all funds are completely safe and secure. Despite these promises, the announcement has received backlash within the crypto community. Crypto trader Vivan Live advised users to remove their funds immediately, while Aakash Athawasya voiced skepticism about Mudrex’s intentions, alleging that the exchange never truly allowed such functionalities and only offered price exposure without ownership. However, founder Alankar Saxena responded to the criticism, defending Mudrex’s long-standing support for crypto deposits and withdrawals. Mudrex’s decision to halt crypto withdrawals coincides with another exchange, Bybit, temporarily restricting services to its Indian customers effective January 12, 2025. The company blamed recent regulatory developments and the continuation of previous restrictions for its decision. As a result, customers can no longer open new trades or access products on the platform, although fund withdrawals remain available. While India was ranked highly in the 2024 Crypto Adoption Index, it still maintains high levies on digital assets, including a 1% tax deducted at source (TDS) and a 30% flat rate as income tax on crypto earnings. In December last year, authorities in the country accused several crypto exchanges, including Binance and WazirX, of evading tariffs. These developments underscore the growing regulatory challenges faced by cryptocurrency exchanges in India and the impact on user experience and market accessibility.