Hello and Namaste Everyone,
A lot is not going well for crypto users in India. Crypto withdrawal is a big problem that users face, especially with the local exchanges in the country. Most exchanges have not been providing withdrawal services for a long time, and because of that, users have no option to withdraw their crypto balances. Possibly, this is why many people lost a big amount due to the Wazirx exchange hack.
I think that some people invest in Crypto for the long term and they are not regular traders. So after they invest they keep the funds in an exchange wallet with the hope that it will grow when the market improves. They had no idea that the exchange could be hacked and this money would be gone. The exchange has been trying to prove that they are one of the safest exchanges in the country but this was a wrong claim. Because those people are not regular traders they don't keep on tracking the balance and also they do not have a wallet which can be a hardware wallet or noncustodial wallet.
After the hack, many things are not going well for Indian users. Although some exchanges were providing the withdrawal following certain guidelines and looks like this scenario is changing. It is because some new exchanges are making things difficult for crypto users. Today I was checking on X and some Indian users reported that they cannot withdraw their crypto from Mudrex. It is surprising news for me because this is an exchange that has been spending a lot on marketing and promotions. I've seen their advertisements across that they are a transparent platform and they are providing withdrawal. I have not registered with this exchange till now because I'm very particular about it.
Sometime back @sanjeevm shared about this exchange that this exchange is going to list HIVE and it's listed now. Undoubtedly a great news for Indian hive users and this was also expected that soon they would enable wallets. Earlier HIVE was listed on Wazirx and has been listed there since the beginning of 2020. But they never enabled wallet for HIVE. I was hopeful that this exchange would enable a wallet that would allow deposits and withdrawals. I would like to mention here that all the exchanges in India are providing wallet deposit services but they do not provide withdrawal. Even the founders have shared in public that users are not interested in the withdrawal which is not the case I'm sure. I believe that providing crypto withdrawal services is the basic and core functionality of a Crypto wallet and as a user, we have the right to do this.
If any exchange does not provide the complete services that include deposit and withdrawal then it is a problem. I would say we should not use such an exchange and I would never use this as the case. I hope @sanjeevm can confirm this as he is the existing user. Recently Binance has started asking for more information if you deposit or withdraw crypto. It's fine as they have kept the option open for the users to do with their funds whatever they want. But Indian exchanges are taking users for granted and do whatever they want. After all this stupidity, they expect common ground with international exchanges which is not fair. They don't provide basic crypto services but they still want Indian users to stick with them. It's not right and I think we as users should avoid using such exchanges.
snapshots from Binance website
Thank you so much
Stay Safe