The removal of prominent global crypto exchanges, such as Binance and Kraken, from Google Play Store in India follows allegations of “illegal” operations. The Financial Intelligence Unit (FIU) issuing show cause notices to nine crypto firms indicates increased scrutiny and regulatory actions in the Indian cryptocurrency space. Stay updated on further developments in this evolving situation.
The recent concerns raised by the Financial Intelligence Unit (FIU) about non-compliance with India’s anti-money laundering rules led to Apple pulling apps of the affected crypto firms. Additionally, various telecom networks and internet service providers have started blocking the URLs of the impacted crypto exchange websites. This suggests a broader regulatory response and heightened scrutiny within the Indian crypto ecosystem. Stay informed for further updates on these developments.
India prohibits offshore cryptocurrency exchanges.
Crypto exchanges such as Huobi, Gate.io, Bittrex, and Bitfinex are among those affected by the recent restrictions in India. Binance, a significant player in the crypto space, clarified that the IP block primarily affects users trying to access the Indian iOS app store or the Binance website from India. Existing users with the Binance app are reported to be unaffected by these measures.
The company underscores its dedication to complying with local regulations and laws, expressing a commitment to ongoing communication with regulators. This commitment aims to ensure user protection and foster the healthy development of the Web3 industry.
Google’s action follows India’s implementation of a 30% capital gains tax and a 1% transaction levy in 2022. This move has led domestic cryptocurrency traders to shift to global platforms with comparatively less stringent know-your-customer protocols.
The regulatory arbitrage, coupled with a broader downturn in the crypto market, resulted in a significant drop in trading volumes for local exchanges. An estimated three to five million customers reportedly transitioned from local to offshore exchanges following the implementation of the 1% Tax Deducted at Source (TDS).
Despite calls from the local crypto community for regulations, the stance of the Indian government remains uncertain. The governor of the Reserve Bank of India has previously stated that their position on cryptocurrency remains unchanged, viewing it as a potential issue that could disrupt emerging markets like India. The regulatory landscape for cryptocurrencies in India continues to be a topic of ongoing discussion and evaluation.
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