Indian Exchange CoinDCX Halts Crypto Withdrawals Citing Wallet Maintenance

• Banks are reluctant to accept crypto transactions because of regulatory uncertainties.
• Trading volumes at CoinDCX have dropped 40% since the UPI ban.

CoinDCX’s chief operating officer, Mridul Gupta, had joined the crypto exchange CoinDCX last year, where he hopes “to drive growth for CoinDCX business and build India’s leadership in a decentralised future.” After a few years, in the summer of 2022, he and the startup’s senior executives are trying to persuade Indian authorities and banks to engage with cryptocurrency exchanges.

Global Crypto Market Downturn Haunts Major Firms

CoinDCX, which has 13 million-plus members, has seen its trading activity plummet since the government began taxing cryptocurrencies on April 1, like many other Indian exchanges. More and more crypto companies worldwide have been affected by the current market collapse, which has led to a rise in the number of enterprises facing bankruptcy and blocking withdrawals to users’ wallets. Stopping withdrawals is one method companies are resorting similar to the crypto lending platform Celsius to Babel Finance.

The state of CoinDCX, for example, may be one of the few with a legitimate explanation owing to a technological issue. Wallet maintenance will be continued till further notice at the Indian crypto exchange, which has put a stop to withdrawals for users was the announcement made by the Indian exchange.

Additionally, banks are reluctant to accept crypto transactions because of regulatory uncertainties, rubbing salt on the wound. The National Payments Corporation of India (NPCI), which facilitates digital payments and settlement systems, has stated its concerns over the movement of funds via the Unified Payments Interface (UPI).

Many Indian crypto exchanges’ development ambitions have been scuppered by the lack of an interface (UPI) for crypto trading. Trading volumes at CoinDCX have dropped 40% since the UPI ban, prompting Gupta and his colleagues to move swiftly and fight harder to persuade the powers-that-be of their case.

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