The Google Play Store in India has recently taken a substantial step in compliance with regulatory directives by removing the applications of major cryptocurrency exchanges Binance and OKX. This action follows a noncompliance notice issued by the Indian Ministry of Finance’s Financial Intelligence Unit (FIU) on December 28, 2023. The notice targeted several exchanges including Binance, OKX, Huobi, Kraken, and others, for operating without proper registration in India.
The FIU's notice mandated that any exchange serving Indian users must register as a “reporting entity” and provide transaction details to the income tax department. In light of non-compliance, the FIU recommended the Ministry of Electronics and Information Technology to block the websites of these exchanges. Despite the app removal, Binance's application and website remain accessible for existing users in India.
This development occurred in the context of India's stringent crypto taxation policies. The Indian government, with the Finance Bill 2022, introduced a 30% tax on cryptocurrency holdings and transfers, in addition to a 1% tax deduction at source for every crypto trade. These measures have reportedly led to a drop in trading volumes on domestic exchanges and a pivot towards foreign platforms.
Binance South Asia has acknowledged the app blockage, reassuring users about the safety of their accounts and funds. However, the removal of these apps from the Google Play Store signifies a growing regulatory scrutiny in India's cryptocurrency market. This decision is reflective of the Indian government's cautious approach towards digital currencies, balancing innovation with regulatory oversight.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.