Indian digital currency exchange CoinDCX has issued a notice on the prolonged restriction of withdrawals on its platform. The exchange stated that the restriction was necessitated by new requirements for making local currency deposits and withdrawals it is working towards meeting.
In the notice addressed to the community, the exchange explained that over the past month, it has been implementing several new requirements, including improving KYC coverage, enhancing the risk framework for deposits and withdrawals, and integrating compliance monitoring tools.
“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 notice said.
This is why it has also been “gradually restricting crypto deposits & withdrawals for multiple users.” Users need to meet the exchange’s enhanced KYC requirements to regain access to digital currency deposits and withdrawals. The notice promises to publish a policy statement on this in early July.
It added that withdrawals and deposits of local currency have continued as usual. The notice comes after users took to social media to decry the lack of explanation for the suspension of withdrawals on the digital currency exchange that had been noticed since May.
Some users feared that the suspension might be due to liquidity troubles amidst the bear market, especially as it seemed to coincide with market volatility. However, Ramalingam S, CoinDCX’s brand, marketing and communications head, said in a tweet that no such issues exist, adding that the new KYC process was gradually being rolled out to all users.
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.
— Ramalingam S (@watsubram) June 20, 2022
CoinDCX keeps introducing innovations
In previous notices, the Coinbase (NASDAQ: COIN) Ventures and B Capital-backed exchange also revealed that it would be implementing the Indian 1% tax-deductible at source (TDS) regime, as well as deposits and withdrawals of the ruble over India’s Immediate Payment Service (IMPS) network.
The platform, which touts itself as India’s most secure digital currency exchange and the biggest exchange by value, became the country’s first unicorn in the industry. Last year, it completed a $90 million funding round at a $1.1 billion valuation.
It also completed another funding round in April this year, raising $135 million at a valuation of $2.15 billion. The Series D round was led by Steadview and Pantera.
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