Although these cryptocurrency exchange apps have been withdrawn from the App Store on the Apple iOS platform, they continue to be accessible through the Google Play Store in India and their websites remain live within the nation.
A recent occurrence in India involves the removal from the Apple App Store of the mobile applications of multiple cryptocurrency exchanges, including prominent platforms such as Binance, Kraken, Mexc, and Kucoin.
This action was taken less than two weeks after it was discovered that these exchanges were allegedly conducting business “illegally” in the nation.
Cryptocurrency Exchange Binance Faces App Removal from Apple Store
The Indian government agency tasked with examining financial transactions, the Financial Intelligence Unit (FIU), issued show-cause notices to nine cryptocurrency firms last month.
The notices asserted that these platforms failed to adhere to the anti-money laundering regulations of India.
Meanwhile, the FIU subsequently requested that India’s IT Ministry obstruct the websites of the nine services operating within the nation.
Also among the exchanges that have been impacted are Huobi, Gate.io, Bittrex, and Bitfinex.
TechCrunch reports that Bitstamp, an additional exchange that has been flagged by the FIU, continues to operate on the App Store in India.
Although these cryptocurrency exchange apps have been withdrawn from the App Store on the Apple iOS platform, they continue to be accessible through the Google Play Store in India and their websites remain live within the nation.
The circumstance underscores the continuous regulatory scrutiny that cryptocurrency platforms encounter in India and the possible repercussions for the accessibility of their mobile applications.
Indian Traders Eye International Crypto Platforms
In recent quarters, there has been a discernible pattern among Indian traders whereby they are progressively transitioning to international cryptocurrency platforms, possibly as a means to circumvent the tax obligations imposed by the Indian government.
This action is in continuation of the taxes that India implemented last year on virtual currencies: a 1% deduction on every cryptocurrency transaction and a 30% tax on gains.
Although certain domestic cryptocurrency exchanges, such as a16z-backed CoinSwitch Kuber, B Capital-backed CoinDCX, and the former Binance-affiliated WazirX, adhere to rigorous know-your-customer (KYC) verifications when onboarding new users, many global platforms may not necessarily subject to the same level of scrutiny.
However, the cryptocurrency exchange CoinDCX has refuted allegations of fraud.
To increase investor confidence, CoinDCX has also set aside $1 million to facilitate asset transfers.
The trading environment has witnessed this transition, as evidenced by WazirX’s 97% decline in trading volume over two years.
This decline can be partially ascribed to a considerable proportion of traders transitioning to global applications.
Furthermore, to find more user-friendly platforms and in response to changing tax regulations, Indian traders have begun to investigate alternatives outside of domestic exchanges.
