Mudrex, a Bengaluru-based cryptocurrency exchange backed by prominent investors like Y Combinator and Better Capital, has temporarily halted crypto withdrawals. The platform cites compliance concerns and a commitment to safeguarding users from misuse by bad actors.

Withdrawal Suspension to Enhance Security

Founder Alankar Saxena announced on January 12 that the pause is part of a compliance upgrade aimed at maintaining platform integrity. He assured users that this process would conclude by January 28. Despite the temporary restriction on crypto withdrawals, INR withdrawals remain unaffected, and customer funds are safe.

“We believe in giving investors the freedom to access their funds anytime and in any manner. To be clear, INR withdrawals are not affected, and all funds are completely safe,” Saxena said, addressing concerns about the move.

Focus on Regulatory Compliance

Mudrex is among the few Indian crypto platforms providing comprehensive crypto transaction services despite regulatory challenges. The company emphasized its dedication to adhering to regulations and protecting users. Saxena also urged users to rely on official updates to avoid misinformation.

The withdrawal suspension follows a period of significant growth for Mudrex. The platform experienced a 200% increase in its user base this year, with monthly trading volumes surpassing $200 million. This expansion highlights the growing interest in cryptocurrencies despite the challenging regulatory environment in India.

A Look at Mudrex’s Journey

Founded in 2018 by Edul Patel, Prince Arora, Alankar Saxena, and Rohit Goyal, Mudrex has raised $9.15 million from investors, including Nexus Venture Partners and QED Investors. In 2024, the company reported revenues of $2.2 million with a team of 93 employees.

With its compliance upgrades underway, Mudrex aims to enhance its platform’s trustworthiness while continuing to support seamless crypto transactions for its users.