• Mudrex paused crypto withdrawals until January 28 to improve security and prevent abuse.
  • The decision sparked frustration among users, with some warning others to withdraw their money.
  • Stricter regulations in India have caused some exchanges like Bybit to limit services, while CoinDCX started allowing crypto withdrawals with certain conditions.

Mudrex halts crypto withdrawals amid system improvements

Mudrex, an Indian cryptocurrency exchange, recently stopped crypto withdrawals, leaving many users confused and frustrated. The company announced on January 11 that the shutdown would last until January 28. The reason for the pause is to improve the platform’s systems to prevent abuse by bad actors. Mudrex explained that it is important to ensure the security of the platform when dealing with something as sensitive as cryptocurrencies. Edul Patel, CEO of Mudrex, said it was necessary to ensure the proper functioning of the platform to avoid illegal activities. Although Mudrex has been one of the few exchanges in India to allow crypto withdrawals for the past three and a half years, this move has caused frustration among many users.

India’s stricter crypto regulations affect exchanges

India has tightened regulations on cryptocurrency exchanges, causing some platforms to shut down. For example, Bybit said on January 12 that it would reduce services such as trading and account creation due to these new rules. At the same time, CoinDCX, another well-known exchange, started allowing users to withdraw crypto on January 6. They allow 1.5 million users to withdraw crypto in the first phase, with plans to expand later. However, if users want to withdraw crypto, they have to turn off their option to deposit Indian Rupees (INR), although they can still withdraw INR.

Mudrex’s decision to halt withdrawals has raised questions about the challenges facing cryptocurrency exchanges in India, especially with growing regulations. As Mudrex works to improve its systems, it will be interesting to see how this decision affects the platform’s reputation and user trust.

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