India intensifies its regulatory stance on cryptocurrencies as Apple removes Binance, Kucoin, and OKX apps from the App Store. The move follows compliance show-cause notices to offshore crypto exchanges, signaling a broader effort to enforce local regulations and anti-money laundering measures. The crypto community awaits developments in India’s evolving regulatory landscape.
India Orders Removal of Crypto Apps from Apple App Store
In a significant move, India has escalated its crackdown on offshore cryptocurrency exchanges by instructing Apple Inc. to remove the apps of major platforms, including Binance, Kucoin, and OKX, from its App Store in the country. The Ministry of Electronics and Information Technology directed the removal, marking a substantial escalation in India’s efforts to regulate the crypto space.
This decision comes after the Financial Intelligence Unit (FIU) issued compliance show-cause notices to nine offshore platforms on December 28, accusing them of operating illegally in country without complying with anti-money laundering laws. The notices targeted exchanges such as Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex.
Apple promptly responded to the government’s directive, removing the apps of Binance, Kucoin, and OKX, among others. This move underscores country’s determination to enforce regulations on the crypto industry, ensuring compliance with local laws and anti-money laundering measures.
Authorities are not stopping at Apple alone; reports suggest that they have also asked Alphabet Inc.’s Google to remove the apps. However, as of now, Google Play Store in India still features the exchange apps that were removed from the App Store. The removal from Apple’s platform follows the FIU’s notice to block the URLs of the mentioned crypto exchanges.
While these actions aim to curb the operations of offshore exchanges, India’s crypto traders had already started moving deposits to local platforms that comply with the nation’s regulations. The government’s concern is that these exchanges are operating without local registrations and not following the country’s tax rules, posing risks related to money laundering and other illicit activities.
Response of Binance to expulsion
In response to the removal, Binance, the world’s largest crypto exchange, stated that the situation is not unique to them and affects other web3 industry apps as well. The exchange reassured its existing customers in India that their funds are safe and emphasized its commitment to constructive policy-making.
India’s regulatory stance on cryptocurrencies has been evolving, with the government imposing money-laundering provisions on the sector and introducing a tax on transactions in 2022. The recent crackdown reflects the authorities’ determination to bring offshore crypto exchanges under regulatory oversight.
As the situation unfolds, the cryptocurrency community awaits further details on the government’s actions and the potential impact on the broader crypto landscape in India.
