Restricted crypto withdrawals, India’s CoinDCX says

“There is a larger compliance requirement due to evolving regulatory needs resulting in increased scrutiny,” a senior executive at the Coinbase Ventures and B Capital backed cryptocurrency exchange said. 

See related article: CoinDCX double downs as the going gets tough in India

Fast facts

• “We have restricted crypto withdrawal from our platform,” with users being able to deposit and withdraw funds in Indian rupees from CoinDCX, the company told Forkast on Monday.
• “The restriction is an enhanced measure, to strengthen our safety protocols and was gradually initiated over the past one month for multiple users,” CoinDCX said in an emailed response to Forkast queries.

• CoinDCX is focusing on improving its know-your-customer norms as well as risk and compliance management for crypto deposit and withdrawal, the emailed statement said without elaborating. 

• However, on a support page updated 24 days ago, CoinDCX said wallets are only open for withdrawals for USDT-Tron and BTC with deposits open for the former.

• CoinDCX will continue to try to protect customers from “ongoing market volatilities,” the company told Forkast in the statement.  

• “There is a larger compliance requirement due to evolving regulatory needs resulting in increased scrutiny,” Ramalingam S, CoinDCX’s brand, marketing and communications head had said on his verified Twitter handle on June 20. 

• This comes after a user complained that withdrawals had been stopped for about a month without a proper response from the company. 

• Apprehensions over a liquidity crisis at CoinDCX are high among its users amid Celsius Network halting user withdrawals, swaps, and transfers citing “extreme market conditions.”

• “As investors and traders, I assure you that there’s nothing to worry about,” Sumit Gupta, CoinDCX cofounder and chief executive officer said on June 23. “Your funds are completely safe with us.”

• Although “the crypto winter is here,” CoinDCX’s team is ensuring “total risk management of assets in cases of lending, and borrowing,” Gupta said.

See related article: CoinDCX offers to let Indians earn yield on crypto holdings