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Business News/ News / India/  Indian crypto exchange restricts cryptocurrency deposits and withdrawals

Indian crypto exchange restricts cryptocurrency deposits and withdrawals

Over the past month, CoinDCX has been gradually restricting crypto deposits & withdrawals for multiple users, the crypto exchange said

Cryptocurrency representationsPremium
Cryptocurrency representations

Indian crypto exchange CoinDCX has restricted crypto deposits & withdrawals for multiple users, it said in a blog post this week, citing compliance, risk and monitoring requirements.

Due to enhanced requirements for providing seamless rupee deposits & withdrawals, CoinDCX has been strengthening its compliance and risk framework, the company said.

“This was done in a series of steps, including improving KYC coverage, enhancing the risk framework for crypto deposit & withdrawal, and integrating with compliance and monitoring tools like Coinfirm, Solidus Labs, Signzy, Digilocker, etc., over the last six months. Over the past month, we have been gradually restricting crypto deposits & withdrawals for multiple users," it added.

How does it impact the investors?

CoinDCX explained that every user needs to complete their KYC on its platform. Crypto deposits & withdrawals remain disabled for everyone by default. One must follow an enhanced due diligence process to enable crypto deposit/withdrawal. The policy on the same will be released in the next 14 days.

“For crypto deposits, all old addresses across wallets are still active and continue to receive funds. We are in the process of disabling the same. INR deposits & withdrawals continue to function as normal. Users can deposit or withdraw funds through the INR route as usual," it added in its blog post.

After the issue gained traction on social media, CoinDCX’s head of marketing, Ramalingam S. tweeted that “while some wallets are under maintenance there is a larger compliance requirement due to evolving regulatory needs resulting in increased scrutiny. The new process is being rolled out in phases, and it will reach all users in due course."

Earlier this month, one of the biggest cryptocurrency lending firms Celsius Network paused withdrawals and transfers between accounts due to "extreme market conditions". “We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations," the platform said in a memo on its website, adding that users will continue to accrue rewards during the pause.

Celsius has been struggling to raise funds in a fragile digital-assets market hit by tightening interest rates, liquidity and the collapse of the Terra blockchain last month.

The sector has come under regulatory scrutiny however, particularly in the crypto markets have been under pressure in recent months, falling alongside other so-called risk assets as interest rates have risen around the world.

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Updated: 24 Jun 2022, 11:04 AM IST
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