Mudrex halts withdrawals until January 28 amid compliance updates

Indian cryptocurrency exchange Mudrex has temporarily suspended crypto withdrawals until January 28, 2025, leading to significant backlash from its user community. 

The decision, announced on January 11, has left many users confused and concerned about the abrupt halt in services. 

Mudrex explained that the suspension is part of an effort to upgrade the platform’s compliance framework to prevent misuse by malicious actors. 

“You need to do that with something as critical as crypto. If the infrastructure is not correct, it is very easy for it to be misused for nefarious activities. As a responsible platform, we need to make sure that our systems are in place and we are improving the services at all points in time,” stated Edul Patel, co-founder and CEO of Mudrex.

Mudrex claims to be one of the few exchanges in India that allows crypto withdrawals, emphasizing its commitment to this feature over the past three and a half years.

However, the withdrawal suspension has sparked scepticism within the community. 

“Congratulations! Mudrex disables Crypto Withdrawals! Don’t tell me I didn’t tell you! If you haven’t taken your money out yet, convert it into INR - withdraw into your bank and run!” warned a trader known as Vivan Live, advising fellow users on social media to withdraw their funds immediately.

Another user, Aakash Athawasya, questioned Mudrex’s credibility, suggesting that the exchange “never had [crypto withdrawals] in the first place” and accusing it of providing “price exposure, not ownership.”

Despite these challenges, Mudrex reported a 200% increase in its user base over the past year, reaching three million users and achieving a 20-fold surge in trading volume in December to $200 million.

The Indian regulatory environment continues to tighten, with other exchanges like Bybit also suspending operations due to evolving regulations. 

In contrast, CoinDCX recently launched crypto withdrawal functionality for its users, although those opting for this feature must disable Indian rupee deposits permanently.