Indian Crypto Exchange Mudrex Temporarily Pauses Withdrawals Until Jan 28

Indian crypto platform Mudrex has paused crypto withdrawals until January 28, citing security upgrades and compliance improvements as the reason behind the move.

The exchange says the step is meant to strengthen protections against misuse by bad actors and keep its platform secure. While crypto withdrawals are on hold, users can still deposit crypto and withdraw INR as usual, and Mudrex reassures that all funds are safe.

Not Everyone’s Buying It

The announcement, made on January 12, didn’t land well with everyone. Some traders raised red flags. A popular crypto personality, Vivan Live, took to X (formerly Twitter) to urge users to exit Mudrex quickly by converting their crypto to INR, suggesting things might not be as smooth as they seem.

Another community member, Aakash Athawasya, went even further. He claimed that Mudrex never really offered true ownership of crypto assets and accused the platform of only offering price exposure. He warned users to stick with on-chain options and avoid centralized Indian exchanges altogether, pointing to his own bad experiences.

Mudrex Responds

In response to the criticism, Mudrex co-founder Alankar Saxena pushed back, saying that the exchange has always allowed deposits and withdrawals — even when others couldn’t. He emphasized that the move is temporary and part of a broader plan to improve the platform.

Interestingly, the pause comes at a time when Mudrex is growing fast. The platform says its user base jumped 200%, and trading volume hit $200 million in December, a 20x increase.

Bigger Picture: Regulatory Pressure

Mudrex isn’t the only exchange facing challenges. On the same day, Bybit also announced that it would suspend services for Indian users, blaming ongoing regulatory restrictions. While users can still withdraw funds, new trades and features are off the table for now.

India may have ranked high on the 2024 Crypto Adoption Index, but it’s still a tough place for exchanges. The country has a 1% tax on every crypto transaction and a 30% flat tax on profits — a combo that’s driven many users away from centralized platforms.

Plus, last December, Indian authorities accused several exchanges — including Binance and WazirX — of evading taxes, with one Binance-linked company facing a bill of nearly $87 million in unpaid GST.

So while Mudrex says it’s just doing some upgrades, the timing — and the broader environment — has left plenty of users on edge.