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Apple's App Store in India has blocked popular crypto exchange apps such as Binance, KuCoin, Bitget, Huobi, OKX, Gate.io, and MEXC. This action comes after the Indian government issued a noncompliance notice against nearly a dozen offshore crypto exchanges.
As a result, these exchange applications are no longer accessible to new users in India, Cointelegraph noted.
Violation of Indian Regulations
On December 28, 2023, the Indian Ministry of Finance's Financial Intelligence Unit (FIU) issued a notice to Binance, Huobi, Kraken, Gate.io, KuCoin, Bitstamp, MEXC Global, Bittrex, and Bitfinex for their alleged illegal operations in India. According to the notice, any exchange offering services to Indian users must register as a "reporting entity" and file statements with the income tax department.
As per CoinDesk, the FIU recommended that the Ministry of Electronics and Information Technology block the mentioned exchanges' websites for noncompliance.
Although Apple's App Store has blocked the FIU-notified crypto exchanges, these platforms can still be accessed through Google's Play Store and web versions. The recent ban has caused concerns among Indian crypto users who relied on offshore exchanges to avoid the hefty tax regime imposed by the government, including a 30% tax on crypto trades and a 1% tax deduction for every trade. Consequently, crypto exchange volumes have dropped significantly.
Demand for Regulatory Framework
The Indian government's actions come amidst a growing demand for crypto regulations. During the recent G20 summit, the Indian government highlighted the need for global collaboration on the crypto regulatory front. The Indian crypto community has long advocated for a balanced and comprehensive regulatory framework.
Despite several reassurances, the Indian finance ministry has yet to introduce a crypto bill in the parliament, leaving the industry uncertain.
Sumit Gupta, the founder of Indian crypto exchange CoinDCX, has shared a plan for investors transitioning from noncompliant offshore exchanges to compliant Indian exchanges. This move aims to provide users with a regulated environment and ensure the safety of their funds. However, the ban on foreign exchanges may pose challenges for Indian crypto enthusiasts.
Binance's Asia-focused X handle has acknowledged the app blockage in India through a tweet. However, they assured existing users that the ban would not impact them. Nevertheless, this development emphasizes the importance of adhering to local regulations to ensure the longevity and trustworthiness of crypto exchanges operating in India.
Photo: James Yarema/Unsplash
