Exchanges suspended Crypto Withdrawals

We often talk about decentralization in crypto and we all expect that this way we can use our funds the way we want without the intervention of any intermediary. Crypto is also like digital money that we keep in our wallets and can use anytime however things are not as easy as it seems with wallets. Choosing the right wallet is very important and similarly choosing the right exchange is also important. There is a very common tagline in the crypto space which is- "Not your key, Not your crypto". This means if we don't have the key to our wallet then our crypto is at risk. Many investors keep their funds in centralized exchange wallets and it's surely easy but it can be risky. I am not saying that this is always risky however the probability is high.

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Few Indian exchanges have stopped crypto withdrawal and because of this there has been lots of chaos in the market and investors are worried. Indian govt had introduced TDS and it was supposed to be implemented effective 1st July and the same is going to happen. Earlier 30% tax and now 1% TDS on each sale transaction is something that made life tough for the traders. I am going through the details for TDS and will share them in another post later.

Exchanges like CoinDCX and Coinswitch have disabled crypto withdrawal and they give the reason for this as crypto regulations. While the withdrawals are disabled but exchanges have confirmed that they are still able to provide INR deposits and withdrawals and to keep it running they had to take this decision. I don't use so many exchanges and fortunately, I don't use both exchanges to keep my crypto which is making me feel good but this.

Indian crypto exchange CoinDCX has restricted crypto deposits and withdrawals for multiple users, it said in a blog post this week, citing compliance, risk, and monitoring requirements. Due to enhanced requirements for seamless rupee deposits & withdrawals, CoinDCX has been strengthening its compliance and risk framework, the company said. Notably, users can still deposit and withdraw INR through net banking services.

Both the exchanges are leading ones and they have quite a big user base taking such a decision is not at all good and it will affect the users who are holding the funds on both the exchanges. There are still 3 days left to start the TDS but if this continues then investors' funds are stuck and they will not be able to use their holdings.

Thank you so much
Stay Safe

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