Binance, Kraken & Other Offshore Crypto Apps Vanish from Apple’s India Store Post FIU Notice

Key Takeaways:

• Regulatory Scrutiny Impacting Global Crypto Exchanges: The sudden disappearance of prominent crypto exchange apps, including Binance, Kraken, KuCoin, and others, from Apple’s App Store in India follows regulatory pressures. The Financial Intelligence Unit (FIU) flagged nine crypto firms for allegedly operating against India’s anti-money laundering rules, leading to this action.
• Local Exchanges Facing Competitive Challenges: Local Indian exchanges, while adhering to stringent verification processes, have witnessed a decline in trading volumes due to the rise of less compliant global counterparts.
• Warnings on Crypto Taxation Impact: Local exchanges had previously cautioned the Indian government about the repercussions of stringent crypto taxation policies, predicting user migration to non-compliant services or decentralized exchanges.
• India’s Historical Tough Stance on Cryptos: Despite overturning a crypto ban issued by the Reserve Bank of India, the country maintains a stringent outlook on digital assets.

In a significant turn of events, the apps of several global crypto exchanges, including Binance, Kraken, KuCoin, and others, have disappeared from Apple’s App Store in India. This development comes swiftly after these platforms faced allegations of operating “illegally” within the country’s crypto space.

The Financial Intelligence Unit (FIU), a prominent Indian government agency overseeing financial transactions, recently issued show cause notices to nine crypto firms, asserting their non-compliance with India’s anti-money laundering regulations. As a result, FIU called upon India’s IT Ministry to block these exchanges’ websites across the nation. While Bitstamp, one of the flagged exchanges, remains operational on the App Store, others have been conspicuously removed.

Although these crypto apps are no longer accessible via Apple’s platform, they remain available on the Google Play Store and their respective websites within India. Notably, Apple has not yet responded to requests for comments regarding this sudden disappearance.

This incident follows a trend of Indian traders flocking to global crypto platforms, potentially to sidestep stringent tax regulations introduced last year. India introduced a 30% tax on crypto gains and a 1% deduction on each transaction, prompting a significant shift towards international exchanges. Meanwhile, Indian exchanges like CoinDCX and others, while requiring robust user verifications, have seen competition from less compliant global counterparts, leading to a decline in trading volumes.

Expressing concerns over India’s crypto taxation policies, local exchanges previously warned the government that such measures would likely drive users towards decentralized exchanges or non-compliant services. In response, CoinDCX has announced rewards for customers transferring their assets from global exchanges to their India-based platform.

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India’s historical stance on cryptos has been stringent, with the Reserve Bank of India initiating a crypto ban nearly five years ago. While India’s Supreme Court overturned the ban, regulatory opposition to cryptos still persists. This recent removal of crypto apps from Apple’s App Store adds another complexity to India’s evolving crypto landscape. As the global and local exchanges navigate regulatory challenges, the impact on traders and the broader crypto community remains to be seen.

Additional Read: How to Deposit Crypto on CoinDCX

Source: TechCrunch