CoinDCX halts Crypto Deposit and Withdrawal Amid Crypto Crash 2022
Withdrawals and deposits on an Indian crypto exchange, COINDCX, have now been halted, causing fear among cryptocurrency investors. CoinDCX ceased withdrawal services of cryptocurrencies on June 19th, and users of CoinDCX are in a state of panic and fear losing their money due to the current scenario in the crypto industry.
What might possibly be the cause of this?
CoinDCX, which has more than 13 million users, has noticed a drop in trading volume since the government began taxing cryptocurrencies on April 1, as have many other Indian exchanges. The current market collapse has impacted an increasing number of crypto companies globally, resulting in an increase in the number of businesses facing insolvency and restricting withdrawals to customers’ wallets.
Similar to the crypto loan platform Celsius, corporations are putting a stop to withdrawals.
CoinDCX’s situation may be one of the few having a valid explanation due to a technological and KYC issue. The Indian crypto exchange has said that wallet maintenance would continue till further notice, despite the fact that withdrawals for users have been halted.
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
In response to a user’s post, asking when will the COINDCX deposit and withdrawals start, CoinDCXCares also said they are undergoing wallet maintenance which may take longer than usual, without specifying any date.
Hi, we regret the inconvenience this has caused. Kindly note that the ongoing wallet maintenance service has been extended until further notice. We are trying our best to complete the upgrade at the earliest. Please follow our announcement page https://t.co/lTpnIFHQxb
— CoinDCX Cares (@CoinDCX_Cares) June 20, 2022
Binance, the world’s largest cryptocurrency exchange, stopped Bitcoin withdrawals on Monday due to high network congestion. The crypto exchange users were informed that they should trade their Bitcoin and withdraw using the BTC-BNB or BTC-ETH network until the problem is fixed, according to their team.
Due to harsh market conditions, Celsius Network, a cryptocurrency lending service, stated on the same day that all withdrawals and transfers between accounts will be halted. This is the latest indicator of pressure in the crypto industry.
So, what are the options for investors now?
CoinDCX is still processing deposits and withdrawals of INR though their platform. If you want to withdraw your crypto, you may not be able to do that, but instead, you can sell your crypto to INR and then withdraw INR without any hassle.
In such circumstances, for lending platform like Celsius, bankruptcy is, at the very least, the most likely consequence for some transactions.
The current situation does not imply that the crypto age is coming to an end; however, both adequate regulation and insurance are required to protect investors, particularly retail investors, who are particularly vulnerable in such a turbulent period.
In the near future, it appears that the cryptocurrency category’s high level of uncertainty will continue to exist, and the segment will only regain its mojo when central banks modify their lending policies and inflation returns to its nominal level.
How is the Indian Community Reacting to CoinDCX Halting Crypto WithDrawals
NirajHolder.ETH posted that he does not feel safe with #CoinDCX or any other crypto exchange that stops you from withdrawing your crypto. The user sold his crypto assets in INR and moved to some other exchange.
I sold my assets in INR @CoinDCX and withdrew, use that money to buy btc or some other exchange
Stay safe 🙏 don't trust anyone https://t.co/NI2NFvkXhN
— nirajhodler.eth (@nirajhodler) June 20, 2022
Kashif Raza said, in a video posted on Twitter that this could be because of pressure from the banks asking exchanges to stop withdrawal of crypto for smoother INR withdrawals and deposits.
What is the real reason? 👇 pic.twitter.com/qu1PkP9PcH
— Kashif Raza (@simplykashif) June 20, 2022
Before COINDCX, Coinswitch Kuber, another Indian crypto exchange had halted withdrawal of crypto from their platform.
What do you think about COINDCX halting crypto withdrawals. Share with us under comments.