- Indian cryptocurrency exchange Mudrex has paused crypto withdrawals until January 28, 2025, to implement crucial security and compliance upgrades.
- Despite concerns from the crypto community, Mudrex assures that INR withdrawals and crypto deposits remain operational, and user funds are secure.
In a significant move reflecting the growing regulatory scrutiny within the cryptocurrency industry, Mudrex, an Indian cryptocurrency exchange, has temporarily halted crypto withdrawals.
This decision, effective immediately, is slated to last until January 28, 2025. The pause is a proactive step by Mudrex to upgrade its compliance systems, aiming to bolster the platform’s security and safeguard against potential misuse by malicious entities.
Enhancing Security Amid Growth
The temporary suspension of crypto withdrawals is part of a broader initiative to enhance the security framework of Mudrex’s operations. On January 12, the company issued a statement explaining that this measure is crucial for strengthening the platform’s defense mechanisms against fraudulent activities.
This decision comes at a time when Mudrex is experiencing rapid expansion, with a reported 200% increase in its user base and a 20-fold rise in trading volumes in December 2024, reaching an impressive $200 million.
In response to the withdrawal halt, the crypto community’s reaction was mixed, with a notable portion expressing concern over the accessibility of their digital assets. Prominent crypto trader Vivan Live advised users on social media platform X to convert their crypto holdings into Indian Rupees (INR) to circumvent potential access issues.
Meanwhile, community member Aakash Athawasya expressed skepticism regarding Mudrex’s operational transparency, suggesting that the platform had previously restricted certain functionalities.
Addressing these concerns, Mudrex founder Alankar Saxena emphasized the exchange’s commitment to maintaining robust crypto deposit and withdrawal capabilities, contrary to the limitations imposed by other platforms facing similar regulatory and operational hurdles. Saxena assured users that all funds are secure and that INR withdrawals and crypto deposits are still fully functional during the upgrade period.
Regulatory Landscape and Industry Impact
The decision to halt withdrawals coincides with tightened regulatory measures impacting other crypto exchanges in India.
For instance, Bybit, another cryptocurrency exchange, also recently curtailed services for Indian users due to the evolving regulatory environment, although it continues to allow fund withdrawals.
The Indian government has been actively refining its approach to cryptocurrency regulation, as evidenced by its high ranking in the 2024 Crypto Adoption Index. Nonetheless, the fiscal landscape for crypto assets remains stringent, with taxes including a 1% tax deducted at source (TDS) and a flat 30% income tax on crypto earnings.
This regulatory rigor was highlighted in December 2024, when several exchanges faced accusations of tariff evasion, with authorities claiming substantial unpaid Goods and Services Tax (GST) liabilities from entities associated with major platforms like Binance and WazirX.
As the January 28th deadline approaches, the crypto community and Mudrex users await further updates on the enhancements and the resumption of normal services, hoping for a seamless transition back to full operational capacity.
Meanwhile, Mudrex’s proactive stance on compliance and security upgrades sets a significant precedent in the industry’s ongoing dialogue with regulatory frameworks.
