Apple has removed the apps of at least nine cryptocurrency exchanges, including Binance and Kraken, from its App Store in India. This move comes less than two weeks after these global firms were flagged for allegedly operating “illegally” in the country.
The Financial Intelligence Unit (FIU), an Indian government agency that scrutinizes financial transactions, issued show cause notices to nine crypto firms, claiming they weren’t compliant with India’s anti-money laundering rules. FIU had requested India’s IT Ministry to block the websites of all nine services in India. Other exchanges whose apps were pulled include Huobi, Gate.io, Bittrex, and Bitfinex. Bitstamp, another offending exchange named by the FIU, was still operational on the App Store in India, though the OKX app had also disappeared.
The apps remain listed on the Google Play Store in India, and their websites are still accessible in the country. Apple did not respond to requests for comment. Binance reassured existing customers in India that their funds were safe and stated they are working hard to engage in constructive policy-making for the benefit of every user and market participant.
Many Indian traders have moved to global cryptocurrency platforms in recent quarters to evade taxes. India began taxing virtual currencies last year, imposing a 30% tax on gains and a 1% deduction on each crypto transaction.
India-based crypto exchanges, including CoinSwitch Kuber, CoinDCX, and WazirX, require rigorous know-your-customer verifications before onboarding new users, but many global platforms do not. Indian cryptocurrency exchanges CoinDCX and CoinSwitch Kuber had previously warned the government that the new taxation policy on crypto would drive users to decentralized exchanges or noncompliant services.
On Tuesday, CoinDCX announced it would provide rewards to customers transferring crypto assets from global exchanges to its India-based platform. India has historically taken a tough stance on cryptocurrencies and the companies facilitating their trading. The Reserve Bank of India implemented a cryptocurrency ban in the country about five years ago, which was eventually struck down by India’s Supreme Court.
However, the central bank has continued to advocate for outlawing crypto, likening virtual digital assets to a Ponzi scheme. Coinbase, another popular global crypto exchange, stopped onboarding new customers in India last year, citing “informal pressure” from the central bank.
