Crypto investment giant Mudrex has resumed its crypto withdrawal services following a brief suspension which began on January 13. The suspension was part of an exercise to upgrade its compliance systems, particularly against financial crimes and enhanced user verification. It announced its resumption of the services in a statement on Tuesday, 28th January, saying that it has revamped its automated systems for highly stringent global regulatory compliance.
Increased Compliance via AI Integration
Mudrex’s platform is now on Artificial Intelligence to make its compliance processes automated. The company ensured that the upgrade fell within the Financial Action Task Force, as well as local regulatory standards, going as far as FIU and AML standards. This is done to enhance ways to identify and prevent financial crimes, especially in crypto transactions.
Verification of Users and Due Diligence Processes
Mudrex has established improved Know Your Customer (KYC) processes for crypto withdrawal to comply with regulatory frameworks. Customers are required to undergo the Customer Due Diligence and Enhanced Due Diligence processes. These processes verify the identity of users and investigate the legitimacy of the source of funds. This helps in ensuring that all crypto transactions made on the platform are not linked to any illegal activities.
Cooling Period for First-Time Users: 14 Days
For the new compliance system, Mudrex has introduced a 14-day cooling period for all new users. Here, the users have to undergo the EDD process, where they have to provide documentation regarding their sources of income and bank statements. This step is designed to avoid unauthorized transactions and minimize fraud cases on the portal.
Wallet Verification Process
In addition to the due diligence processes, users will now be required to confirm the address for receiving any crypto by Mudrex. New or unused wallet addresses for a sender and recipient must be re-verified and may take as long as seven days.
Existing Fee on the Platform and Feedback of Users
Mudrex charges a 2% platform fee on transactions to maintain the compliance infrastructure required to enforce these regulations. While some users have expressed concerns over the high platform fees, Mudrex has defended its position, explaining that the funds are essential for maintaining security and regulatory compliance in the volatile crypto industry.
Impact of Regulatory Measures on the Crypto Industry
Despite the absence of comprehensive crypto regulation in India, the government has directed that crypto firms comply with anti-money laundering laws and get registered with the FIU. The recent spate of security incidents, such as WazirX’s wallet hack and ByBit’s suspension of crypto trading services, have made the entire industry realize a need for ensuring stronger compliance and security measures for safeguarding funds belonging to users.
The increasing importance of strong regulatory frameworks in the cryptocurrency space is reflected in Mudrex’s decision to upgrade its compliance processes and resume crypto withdrawals. With the Indian government continuing to tighten regulations, firms like Mudrex are focusing on improving transparency and security for their users to reduce the risks associated with crypto trading and transfers.
