Indian Exchange Mudrex Pauses Crypto Withdrawals Until January 28

by

The Indian digital currency trading platform, Mudrex, has temporarily stopped the process of releasing cryptocurrencies for withdrawal.

This pause is included as a step towards enhancing its security system’s integrity, ensuring it adheres to high-security standards and deters malicious users from exploiting it.

Backlash and Clarification

On January 12, they announced that to strengthen the platform’s security and protect it from potential threats, they will momentarily halt crypto withdrawals until January 28, 2025.

Mudrex further guaranteed their users that the process for withdrawing Indian Rupees (INR) remains unchanged, while cryptocurrency deposits continue to work smoothly. Furthermore, they want to emphasize that all user funds are entirely secure and protected.

Even though this announcement was made with assurances, it has faced criticism within the cryptocurrency world. Crypto analyst Vivian Live highlighted the issue for users on platform X, suggesting they swiftly withdraw their funds by exchanging their digital assets into Indian Rupees (INR) to minimize potential complications.

Aakash Athawasya, another community member, expressed doubts concerning Mudrex’s motives, suggesting that the platform had not genuinely provided those claimed functionalities but rather merely offered price exposure without actual ownership rights.

Additionally, he advised users to steer clear of the platform and opt for on-chain alternatives instead, pointing out his own financial setbacks experienced on Indian trading platforms.

Nevertheless, Alankar Saxena, the founder, countered the criticism, upholding Mudrex’s historical commitment to supporting crypto deposits and withdrawals. He highlighted that users have always been able to manage their funds freely with Mudrex, unlike many comparable companies that faced restrictions due to regulatory and operational hurdles.

Amidst my excitement about this cryptocurrency company’s remarkable growth, I find myself facing a temporary halt in operations. This suspension comes at a time when the company has been experiencing unprecedented success. In just a short span, their user base has nearly doubled, and the trading volumes for December 2024 have multiplied twentyfold, reaching an impressive $200 million. It’s a testament to the company’s strength, and I eagerly await its resumption of operations.

Regulatory Pressures

On the same date, January 12, 2025, both Mudrex and Bybit have decided to pause their cryptocurrency withdrawal services for their respective Indian clients, a move that occurs simultaneously.

Due to some recent regulations and ongoing limitations from before, the company has chosen to restrict certain services. Specifically, clients are unable to create new transactions or utilize the offered products on the platform at this time. On a positive note, withdrawing funds from your account is still possible.

In 2024, India was recognized with a high ranking in the Crypto Adoption Index. However, it continues to impose significant taxes on digital assets. For instance, there’s a 1% Tax Deducted at Source (TDS) and a flat income tax rate of 30% on earnings from cryptocurrencies.

Last December, officials within the nation alleged that multiple cryptocurrency trading platforms, including Binance and WazirX, were avoiding tariff payments. As stated by Pankaj Chaudhary, Minister of State for Finance, Nest Services Ltd, a firm associated with Binance, is said to owe approximately $87 million in unpaid Goods and Services Tax (GST).

Read More

2025-01-14 07:40