Indian crypto exchange Mudrex has temporarily paused cryptocurrency withdrawals, citing compliance upgrades to prevent misuse by malicious actors. The move comes amidst a remarkable 200% surge in its user base this year.

Compliance Upgrades to Curb Misuse

Mudrex’s co-founder Alankar Saxena announced on January 12 via X (formerly Twitter) that the pause in withdrawals is part of an effort to enhance compliance measures. The platform aims to “avoid bad actors” and ensure the safety of its users. Saxena assured that the process will be completed by January 28.

INR Withdrawals Unaffected, Funds Secure

The Bengaluru-based exchange clarified that only crypto withdrawals are impacted. INR (Indian Rupee) withdrawals remain operational, and all customer funds are secure. Emphasizing its commitment to transparency, Saxena stated, “We believe in giving investors the freedom to access their funds anytime and in any manner.”

Mudrex, supported by notable investors like Y Combinator and Better Capital, has seen rapid expansion despite regulatory hurdles in India. The exchange’s monthly trading volumes have soared to $200 million, reflecting a 200% increase in its user base. Mudrex also distinguishes itself by supporting crypto transactions, a service many Indian platforms avoid due to compliance complexities.

Founder’s Call for Accurate Information

Addressing misinformation circulating online, Saxena urged users to rely on official updates and contact the support team for queries. Founded in 2018, Mudrex has grown significantly, raising $9.15 million in funding and reporting $2.2 million in revenue in 2024.