Indian Crypto Exchange CoinDCX Restricts Deposits, Withdrawals 'For Multiple Users': Here's Why
CoinDCX said that “every user needs to complete their KYC.”
CoinDCX, the Mumbai-headquartered Indian crypto exchange, said it has restricted deposits and withdrawals for several users in order to strengthen its “compliance and risk framework.” The move was made without prior communications, sending waves of panic among users of the platform. With over 1.3 crore registered users, CoinDCX offers trading facilities on over 340 different cryptocurrencies, with a minimum investment of Rs 100. In order to quell panic, CoinDCX Head of Marketing Ramalingam S. tweeted that some wallets are under maintenance and that there was a “larger compliance requirement due to evolving regulatory needs resulting in increased scrutiny.”
Earlier this week, CoinDCX released a blog post that said it has been “gradually restricting crypto deposits and withdrawals for multiple users.” The company said, “Due to enhanced requirements for providing seamless INR deposits and withdrawals, CoinDCX has been strengthening its compliance and risk framework.”
“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,” the blog added.
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CoinDCX said that “every user needs to complete their KYC.” It added, “Crypto deposits & withdrawals remain disabled for everyone by default. One must follow an enhanced due diligence process to enable crypto deposit/withdrawal.”
As more and more users started raising their concerns on Twitter, Ramalingam tweeted that “the new process is being rolled out in phases, and it will reach all users in due course. Until then, I request your support.”
Hi,
— Ramalingam S (CoinDCX) (@watsubram) June 20, 2022
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, & it will reach all users in due course. Until then, I request your support.
As of yet, CoinDCX hasn’t announced a final date of the rollout.
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