Indian crypto exchange Mudrex pauses withdrawals for compliance upgrade

Indian cryptocurrency exchange Mudrex has temporarily paused its crypto withdrawals as it continues upgrading its compliance suite.

Mudrex believes it will have completed its compliance upgrade by January 28th and consequently resume crypto withdrawals.

Mudrex believes its compliance upgrade will prevent bad actors

In an X post on January 12, Alankar Saxena, Founder and Chief Trading Officer at Mudrex, announced that the firm would temporarily cease withdrawing digital assets.

Saxena claimed that the company was still working on its compliance upgrade, and the withdrawal halt was implemented as part of the broader effort. The platform, however, still allows for INR withdrawals.

Mudrex said the withdrawal suspension would only last until the compliance suite is fully upgraded, potentially till January 28. The company insists that the compliance upgrade will be necessary to “avoid bad actors.” Saxena even emphasized that the company’s priority is serving its investors, ensuring they have unrestricted access to their funds at all times. 

He defended Mudrex’s decision, saying the company has maintained its services in the last few years; it never halted its deposits or withdrawals, even when other Indian companies did. He claimed the firm believes in crypto’s core principles and is still committed to advancing the crypto movement.

Additionally, Edul Patel, co-founder and CEO of Mudrex, commented “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.”

The crypto community believe there’s more to Mudrex’s withdrawal suspension

Some crypto community members have been skeptical of Mudrex’s move and have even asked users to be cautious and pull out from the platform immediately. 

Vivian Live on X warned users on the platform, asking all those with remaining funds to convert them into INR and deposit the funds in their bank accounts. 

Aakash Athawasya even claimed that Mudrex had never offered crypto withdrawals in the first place, arguing the company had only provided price exposure and not ownership. He even jokingly commented that he would not touch Mudrex with a ten-foot pole, and neither should anyone.

Aakash believes that the exchange may not have crypto holdings urging community members not to use Mudrex.

Still, Mudrex has over 3 million users, and in December, the exchange’s trading volume rose to $200 million. The company aims to onboard 10 million users by the end of 2025, by entering new markets and catering to a wider range of audience.