 Indian crypto exchange Mudrex clarifies on halting crypto withdrawals 
2025-01-12
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Indian cryptocurrency exchange Mudrex has temporarily halted crypto withdrawals, triggering a wave of backlash from the crypto community.
On Jan. 11, Mudrex paused crypto withdrawals on its platform, leaving users puzzled about the abrupt decision. 
However, the company told Cointelegraph that the suspension is temporary, lasting until Jan. 28, and is aimed at upgrading the platform’s compliance framework to prevent misuse by bad actors.
When questioned about the oddity of pausing operations for a compliance upgrade, Edul Patel, co-founder and CEO of Mudrex said:
Notably, Mudrex is one of the few crypto exchanges in India that allow crypto withdrawals.
“We are the only company that has had crypto withdrawals in India for the last three and a half years now, and we continue to stick with that,” said Patel.
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Community backlash
The issue gained traction after a crypto trader, Vivan Live, posted on X, warning Mudrex users to withdraw their funds immediately. 
In the post, Vivan wrote:
Another community member, Aakash Athawasya, expressed skepticism about the exchange’s intentions, suggesting that Mudrex “never had [crypto withdrawals] in the first place” and accusing it of offering “price exposure, not ownership.” He said he wouldn’t touch Mudrex “with a ten-foot pole.”
Mudrex reported a 200% yearly increase in its user base, reaching 3 million, and a 20-times surge in December’s trading volume to $200 million.
India faces increasing regulatory scrutiny, which has already led to exchanges like Bybit suspending operations in the country. Bybit announced that starting Jan. 12, it would restrict services, including crypto trading, account openings, and placing orders, citing evolving regulatory developments as the reason for its temporary withdrawal from the Indian market.
CoinDCX introduces crypto withdrawals
Indian cryptocurrency exchange CoinDCX has launched crypto withdrawal functionality for its users. 
On Jan. 6, Sumit Gupta, CEO of CoinDCX, announced on X that phase 1 of the rollout will grant access to 1.5 million users, with plans to expand in subsequent phases. 
However, users opting for crypto withdrawals will have to permanently disable their Indian rupee (INR) deposit functionality, although INR withdrawals will continue to work.