Apple has removed the apps of nine major crypto exchanges, including Binance and Kraken, from its Indian App Store according to a new report by TechCrunch. This development comes less than two weeks after the Indian government’s Financial Intelligence Unit (FIU) accused these platforms of operating “illegally” and non-compliant with anti-money laundering (AML) regulations.
The FIU issued show-cause notices to nine crypto exchanges late last month, alleging violations of India’s AML rules. This prompted the country’s IT Ministry to request Apple block access to their apps within India. Alongside Binance and Kraken, the removed apps include those from Huobi, Gate.io, Bittrex, and Bitfinex. Interestingly, Bitstamp, another flagged exchange, remains available on the App Store at the time of writing.
Users who already downloaded the affected apps can still access them. However, new downloads are no longer possible within India. Apple hasn’t officially commented on the situation, but Binance assured existing Indian customers their funds remain safe. The exchange expressed commitment to constructive dialogue with policymakers and its continued interest in the Indian market.
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Many Indian traders have recently moved to global crypto platforms, potentially to avoid newly imposed taxes in the country, which amount to a 30% tax on crypto gains and a 1% transaction fee last year. While Indian exchanges like CoinSwitch and CoinDCX enforce strict KYC protocols, some global platforms lack similar safeguards. This discrepancy fuels regulatory concerns around consumer protection and potential money laundering risks.
Ashish Singhal, co-founder of CoinSwitch, emphasizes the need for offshore exchanges to comply with India’s AML and CFT regulations. He argues that such compliance improves consumer protection and ensures a more consistent regulatory environment for all VDA (virtual digital asset) exchanges operating in India.
India’s relationship with crypto has been turbulent. The Reserve Bank of India (RBI) previously imposed a ban on cryptocurrencies, which was later overturned by the Supreme Court. However, the RBI remains skeptical and has compared crypto to Ponzi schemes. Coinbase, another major exchange, halted new user onboarding in India last year amid alleged “informal pressure” from the RBI.
The App Store removal highlights the intensifying regulatory scrutiny around crypto in India. Exchanges now face the pressure to comply with Indian regulations while navigating a complex and evolving legal landscape. Whether global giants like Binance and Kraken adapt their operations or retreat from the Indian market remains to be seen. Meanwhile, Indian platforms might benefit from this regulatory crackdown, potentially capturing a larger share of the domestic crypto market.
