The two largest crypto exchanges in India have disabled withdrawals and people are not happy.
Speculations are abounding about the two largest and most popular crypto exchanges in India. Apparently, they have stopped customers from making withdrawals, and the reasons for this action are somewhat flimsy.
The exchanges, CoinDCX and Coinswitch Kuber have taken this step at a time when a number of other crypto-related platforms have done the same. This has fueled speculations about why it’s happening. However, the two exchanges have moved to dispel fears and contain rumors.
“Strengthening KYC”
CoinDCX sent out a tweet pointing customers to a more detailed announcement posted earlier about the said action.
ANNOUNCEMENT ?
Users have been asking questions regarding our deposits/withdrawal facilities.
Here's a breakdown on
– Importance of KYC, ?
– How CoinDCX is working to ensure compliance,?
– How does it impact you??Learn more ?https://t.co/dxINFBY9l6
— CoinDCX: Making Crypto Accessible to Indians (@CoinDCX) June 20, 2022
The announcement details that the decision to disable withdrawals was made in order to give room for the exchange to strengthen its KYC (Know Your Customer) protocols and make it safer for customers.
However, this explanation doesn’t seem to satisfy a lot of people in the crypto industry. A Reddit post by one user details some responses from the exchange when queried by customers about the disabled withdrawals.
On one hand, the exchange claims to be taking steps to comply with regulations. On the other hand, customers are left without access to their crypto holdings. This has led some to remind the community that having direct access to holdings and owning the keys is the ultimate way of ensuring no one controls other people’s stash.
There’s an adage that has been going around the crypto industry for a while:
“Not your keys, not your coins.”
Did They Get Rekt?
At the same time, there are questions as to whether the two exchanges may have run into losses after the crypto market crashed. For one, a few other platforms like 3AC and Celsius Network disabled withdrawals and transfers in the face of heavy liquidation when Bitcoin’s price fell. Could this scenario be playing out on these exchanges? As it’s always the case in this industry, the truth will be revealed in time.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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