Indian cryptocurrency exchange Mudrex has suspended crypto withdrawals until January 28 to implement compliance upgrades, triggering widespread criticism and skepticism among users.
On January 11, Mudrex announced the temporary halt, citing the need to enhance its compliance framework to prevent misuse of the platform by bad actors.
CEO Edul Patel Defends the Decision
Addressing concerns over the suspension, Mudrex co-founder and CEO Edul Patel explained the importance of infrastructure improvements:
“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.”
Patel also noted that Mudrex remains one of the few exchanges in India to offer crypto withdrawal services, stating:
“We are the only company that has had crypto withdrawals in India for the last three and a half years now, and we continue to stick with that.”
Community Reactions and Criticism
The suspension quickly sparked frustration among users, with some accusing the platform of mismanagement or worse. Crypto trader Vivan Live took to X to warn Mudrex users to withdraw funds immediately, stating:
“Congratulations! Mudrex disables Crypto Withdrawals! Don’t tell me I didn’t tell you! If you haven’t taken your money out yet, convert it into INR – withdraw into your bank and run!”
Another user, Aakash Athawasya, criticized the platform, alleging that Mudrex never offered genuine crypto withdrawals, only price exposure. He added that he wouldn’t trust the exchange “with a ten-foot pole.”
Mudrex’s Growth Amid Regulatory Challenges
Despite the controversy, Mudrex has seen significant growth. The exchange reported a 200% year-over-year increase in its user base, now totaling three million, and a 20-fold surge in December’s trading volume to $200 million.
However, Mudrex operates in a challenging regulatory environment in India. Increased scrutiny has already led other platforms, such as Bybit, to suspend operations. Starting January 12, Bybit restricted services, including crypto trading and account creation, citing evolving regulatory developments as the reason for its temporary exit.
