In a significant development for the Indian cryptocurrency market, Apple has recently removed several leading crypto exchange applications, including Binance and Kraken, from its App Store. This action follows the directives issued by India's Financial Intelligence Unit (FIU) as part of a broader crackdown on offshore exchanges operating in the country.
On December 28, 2023, the FIU issued notices to nine offshore crypto exchanges, including industry giants like Binance, Kraken, and Huobi, for non-compliance with India’s anti-money laundering laws. In line with this, Apple has withdrawn these applications from its store, marking a substantial shift in the availability of crypto trading platforms in India.
The FIU has mandated that crypto exchanges register as "Reporting Entities" under the Prevention of Money Laundering Act (PMLA), 2002. This regulation is aimed at ensuring that virtual digital asset service providers adhere to stringent record reporting and other compliance obligations. However, many offshore exchanges serving a large Indian user base have bypassed this registration, thus placing themselves outside the ambit of India’s AML framework.
This move has significant implications for Indian consumers, who are now advised to transfer their assets to FIU-registered Indian exchanges to maintain control over their assets and avoid potential risks associated with non-compliant platforms. Despite the removal from Apple's App Store, these applications remain listed on Google Play Store, and their websites are accessible across India. Existing app users can continue to access them, but new downloads have been restricted.
This development is a part of India's evolving stance on cryptocurrencies. The Reserve Bank of India (RBI) had previously banned cryptocurrencies, a decision overturned by the Supreme Court. However, the RBI continues to advocate for a ban on virtual digital assets, likening them to Ponzi schemes. Additionally, India's stringent tax policies on cryptocurrencies have influenced trading behaviors, with many traders moving to global platforms offering less stringent know-your-customer (KYC) verifications than Indian exchanges.
Interestingly, despite these regulatory challenges, India ranks first in Chainalysis' 2023 global crypto adoption index, highlighting the country's prominent position in the global crypto landscape.
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.
