Indian cryptocurrency exchange Mudrex has temporarily paused crypto withdrawals, sparking mixed reactions from the crypto community.
Effective January 11, the move was announced as part of the company’s efforts to enhance its compliance framework and prevent misuse by bad actors.
Users Question the Sudden Hold
Many customers are confused and worried about the withdrawal halt, which is scheduled to remain until January 28. Mudrex explained that the action was necessary to guarantee that the platform’s security and stability.
Edul Patel, co-founder and CEO of Mudrex, stated, “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.”
Also Read: Central Bank Of Brazil Proposes Restrictions On Stablecoin Withdrawals To Self-Custodial Wallets
Despite the suspension of crypto withdrawals, the platform has allowed users to continue withdrawing funds in Indian Rupees (INR). On January 12, Alankar Saxena, co-founder and Chief Trading Officer of Mudrex, posted on X (Twitter) to address concerns.
He emphasized that the measure was temporary and aimed at creating a safer ecosystem. “This step is part of our effort to upgrade the compliance suite to avoid bad actors. Our priority is to serve our investors in the best and most compliant way possible.
We will be able to complete the compliance upgrade by January 28th and will resume crypto withdrawals after,” Saxena said.
Crypto Community Reacts
While Mudrex has assured users of the safety of their funds, some in the crypto community remain skeptical.
Vivian Live, a prominent community member on X, urged users to convert their remaining crypto assets to INR and transfer the funds to their bank accounts as a precaution. Others have raised questions about Mudrex’s credibility, citing past concerns over transaction delays.
One user expressed frustration over unresolved issues with fund withdrawals, stating, “Although Mudrex claims that the money has been credited to my account, I have not received it. It’s been over 10 days, and I’m still uncertain about the whereabouts of my funds. The customer care has the same update every time.”
Another sceptic, Aakash Athawasya, accused Mudrex of offering price exposure rather than actual ownership of crypto assets. He said he would avoid using the platform, calling its claims “questionable.”
Mudrex, A Big Name in the Industry
Despite the backlash, Mudrex has highlighted its growth in the crypto space. The platform reported a 200% annual increase in its user base, now exceeding three million, and a 20-fold surge in trading volume to $200 million in December 2024.
The company also emphasized its history of maintaining crypto withdrawal services even when many Indian platforms faced operational challenges.
Mudrex’s leadership remains optimistic about the platform’s future. Saxena reaffirmed the company’s commitment to the core principles of cryptocurrency and assured users that their funds are safe.
While Mudrex’s intentions may be genuine, the incident underscores the challenges faced by crypto exchanges in India’s uncertain regulatory environment. How Mudrex handles the compliance upgrade and its aftermath will likely determine its credibility and standing in the Indian crypto market.
Also Read: Mudrex Aims At Onboarding 10M Users in 2025 Amid 200% User Base Surge in 2024