In response to compliance notices from the Indian government to nine cryptocurrency entities, Apple has removed several leading offshore exchanges, including notable platforms like Binance, KuCoin, and OKX, from its App Store in India.
India’s Regulatory Authority Target’s Cryptocurrency Operators
Following show-cause notices issued by the Financial Intelligence Unit (FIU) of India on December 28, under the Prevention of Money Laundering Act (PMLA), nine exchanges, including Binance, KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex, faced regulatory action. The notices accused these exchanges of illegal operations in India due to non-registration and non-compliance with local tax rules.
Interestingly, OKX was also targeted, despite not receiving a direct show-cause notice. The Indian government is taking steps to block the URLs of these exchanges, currently accessible within India, as part of efforts to ensure legal compliance.
However, the process is ongoing, with potential further actions pending responses from the entities involved.
While Apple has removed these apps from its India store, they continue to be accessible on the Google PlayStore. This differing response from the tech giants to regulatory measures raises questions.
The future actions of Google PlayStore in regard to these exchanges are yet to be determined, leaving uncertainty about whether it will follow Apple’s decision to shut them down.
Concerns About Tax Evasion in India and its Impact on Trading Platforms
This incident underscores the regulatory landscape for cryptocurrencies in India, where popularity has surged but authorities scrutinize them closely. The country took a decisive stance on addressing tax evasion concerns, particularly as many Indian traders turned to popular cryptocurrency platforms. It’s important to note that taxes on virtual currencies were implemented in the country last year.
Despite this, India-based crypto exchanges with rigorous KYC verifications, including CoinDCX, Kuber, WazirX, and CoinSwitch, continue to operate and have experienced increased deposits following actions by the Financial Intelligence Unit (FIU), as reported by Cryptopolitan.
The removal of cryptocurrency exchange apps from Apple’s India App Store represents a crucial moment in the ongoing dialogue between digital currency platforms and regulatory bodies.
