Apple has removed the apps of at least nine cryptocurrency exchanges, including Binance and Kraken, from its App Store.
This comes less than two weeks after these crypto platforms were accused of illegal operations in the Asian country. Let’s discover more about it.
Apple Removes Binance and Others from Indian App Store
Last month, the Indian government agency, the Financial Intelligence Unit, reportedly notified nine crypto companies of their non-compliant operations, especially with India’s anti-money laundering policies. The FIU asked the Indian IT Ministry to restrict the websites of all nine services. Some of the other affected apps include Bitfinex, Huobi, Gate.io, Bittrex, MEXC, KuCoin, and OKX.
Nowadays, the apps and their websites are still available in India and listed on the Google Play Store, but there is not a deadline for them. Users who had previously installed these apps still have access to them, while new users will no longer have access to the affected apps.
We are aware of new changes that have been introduced regarding crypto exchanges on the iOS App Store in India, impacting the Binance App.
The ongoing situation is not unique to #Binance and we remain committed to complying with local regulations and maintaining dialogue with…
— Binance South Asia (@BinanceDesi) January 10, 2024
The FIU requires these crypto exchanges to register as “reporting entities” and submit statements to the income tax department. The news has received mixed reactions from the Indian crypto community.
Ashish Singhal, co-founder and chief executive of CoinSwitch, urged offshore exchanges to comply with the FIU’s demands as local platforms have complied.
The apps of several offshore VDA #exchanges have started getting blocked on app stores.
It seems that the Financial Intelligence Unit-India (FIU-IND) show cause notice dated 28 Dec 2023 and their proposed action on offshore VASPs is taking effect.
By asking offshore exchanges… pic.twitter.com/GMImfZA1T7
— Ashish Singhal (@ashish343) January 10, 2024
Singhal further explained that such compliance “is also better for consumer protection in India since there will be greater regulatory oversight of the ecosystem.”
India’s Tax on Crypto Income Hinders the Industry
In a clear attempt to avoid paying taxes, many Indian traders have recently shifted to foreign crypto platforms. India started taxing virtual currencies last year. Gains are subject to a 30% tax, and each cryptocurrency transaction is subject to a 1% deduction.
Other factors are pushing Indian locals to foreign platforms. Another reason is that India-based crypto exchanges such as CoinSwitch, Kuber, CoinDCX, and WazirX still demand stringent know-your-customer verifications before onboarding new users. However, this is not the case with foreign platforms.
[Community Update] Amidst the changing landscape of Indian VDA, where offshore exchange apps are now facing restrictions due to government directives, CoinDCX acknowledges the community's apprehensions. This is a defining moment for VDA in India, and we're dedicated to… pic.twitter.com/uTpxGqsHk0
— Sumit Gupta (CoinDCX) (@smtgpt) January 10, 2024
Interestingly, local Indian exchanges like CoinDCX are taking steps to regain market share. Following the FIU’s ban on some foreign exchanges, CoinDCX announced that it would offer rewards to Indian traders who move from foreign crypto exchanges to Indian exchanges.
