Indian cryptocurrency exchange CoinDCX is grappling with significant user dissatisfaction as customers are left bewildered by its conflicting policies regarding crypto withdrawals. The platform, which boasts over 1.6 crore registered users, has recently come under fire for its lack of clarity and transparency about withdrawal restrictions.
The controversy began when users on social media platform X reported delays in processing both crypto and INR withdrawals. CoinDCX swiftly responded, attributing these issues to its commitment to ensuring user safety and adherence to stringent compliance measures, specifically the Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) guidelines outlined by the Financial Intelligence Unit (FIU) of India.
CoinDCX co-founder Sumit Gupta stated that the exchange had adopted a “conservative approach” to crypto withdrawals, explaining that unrestricted withdrawals could expose the platform to risks, including the possibility of illicit transactions. According to Gupta, allowing crypto withdrawals without proper scrutiny could lead to the freezing of their bank accounts by authorities, jeopardizing user INR funds. To avoid such scenarios, the exchange has opted to restrict crypto withdrawals for the time being, while INR withdrawals remain unaffected.
Despite this explanation, confusion persisted among CoinDCX users. The platform’s website continued to list several cryptocurrencies, such as Ethereum (ETH), as available for withdrawal, creating a stark contrast with Gupta’s statement. Some users reported being unable to find the “withdraw” option for crypto, while others were still able to access it, suggesting inconsistency in the application of the withdrawal restrictions.
CoinDCX’s support account on X further added to the confusion by stating that crypto withdrawal access could be reinstated for some users, pending approval after internal checks. Additionally, the support team clarified that certain accounts might be linked to banking facilities that do not support crypto withdrawals, further complicating the situation.
As CoinDCX works toward resolving the withdrawal issues and aligning its policies with the ever-evolving Indian crypto regulations, customers continue to demand more transparency and consistency from the platform. The situation highlights the challenges faced by crypto exchanges in navigating unclear and shifting regulatory landscapes in India, leaving users uncertain about the platform’s reliability and communication practices.
4o miniIndian cryptocurrency exchange CoinDCX is grappling with significant user dissatisfaction as customers are left bewildered by its conflicting policies regarding crypto withdrawals. The platform, which boasts over 1.6 crore registered users, has recently come under fire for its lack of clarity and transparency about withdrawal restrictions.
The controversy began when users on social media platform X reported delays in processing both crypto and INR withdrawals. CoinDCX swiftly responded, attributing these issues to its commitment to ensuring user safety and adherence to stringent compliance measures, specifically the Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) guidelines outlined by the Financial Intelligence Unit (FIU) of India.
CoinDCX co-founder Sumit Gupta stated that the exchange had adopted a “conservative approach” to crypto withdrawals, explaining that unrestricted withdrawals could expose the platform to risks, including the possibility of illicit transactions. According to Gupta, allowing crypto withdrawals without proper scrutiny could lead to the freezing of their bank accounts by authorities, jeopardizing user INR funds. To avoid such scenarios, the exchange has opted to restrict crypto withdrawals for the time being, while INR withdrawals remain unaffected.
Despite this explanation, confusion persisted among CoinDCX users. The platform’s website continued to list several cryptocurrencies, such as Ethereum (ETH), as available for withdrawal, creating a stark contrast with Gupta’s statement. Some users reported being unable to find the “withdraw” option for crypto, while others were still able to access it, suggesting inconsistency in the application of the withdrawal restrictions.
CoinDCX’s support account on X further added to the confusion by stating that crypto withdrawal access could be reinstated for some users, pending approval after internal checks. Additionally, the support team clarified that certain accounts might be linked to banking facilities that do not support crypto withdrawals, further complicating the situation.
As CoinDCX works toward resolving the withdrawal issues and aligning its policies with the ever-evolving Indian crypto regulations, customers continue to demand more transparency and consistency from the platform. The situation highlights the challenges faced by crypto exchanges in navigating unclear and shifting regulatory landscapes in India, leaving users uncertain about the platform’s reliability and communication practices.
