Mudrex Halts Withdrawals Amid India’s Regulatory Clampdown
India’s cryptocurrency market faces mounting uncertainty as Mudrex temporarily suspends withdrawals, sparking panic among traders. This move underscores the growing impact of India’s tightening regulatory environment on local crypto platforms.
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Mudrex suspended withdrawals on January 11, with the freeze expected to last until the end of the month, according to Indian news outlet Liputan. The company attributed the decision to ongoing security upgrades and efforts to prevent misuse. However, with India’s escalating regulatory clampdown on cryptocurrencies, many investors fear the suspension could indicate deeper operational or compliance challenges.
In recent months, India has intensified its oversight of the crypto industry. The government introduced new taxes on digital asset trading profits and implemented stricter user identification requirements, creating widespread uncertainty and driving significant capital outflows.
This regulatory tightening aligns with India’s broader goal of launching a Central Bank Digital Currency (CBDC) and centralizing its digital economy. The government appears to be sidelining competing crypto assets. While the Reserve Bank of India initially proposed a complete ban on cryptocurrencies, policymakers have instead opted for a more gradual approach, introducing targeted restrictions and limitations.
Crypto exchanges in India have responded differently to these challenges. While Mudrex has temporarily paused withdrawals entirely, citing technical upgrades, other platforms like CoinDCX have introduced withdrawal caps, limiting transactions to $300 per day for select users.
Related: Cryptocurrency Regulations in India: Key Features
Mudrex’s suspension of withdrawals serves as a stark warning for India’s crypto community. It highlights the urgent need for clearer, more transparent regulatory policies to foster stability and trust in the market. Investors, in the meantime, should prepare for further disruptions and consider alternative platforms to continue trading.
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