The recent removal of crypto exchange applications from Apple’s Indian App Store has caused concern among users and industry players. Binance, one of the largest crypto exchanges globally, confirmed the removal and emphasized its commitment to complying with local regulations. However, this move has raised questions about the stance of both Apple and Indian regulators towards cryptocurrencies.
Apple’s decision to remove crypto-related applications, including Binance, Kraken, MEXC Global, HTX (formerly Huobi), and Gate.io, from the Indian App Store is consistent with its strict policies on cryptocurrency. In the past, both Coinbase Wallet and Trust Wallet faced a similar situation but were eventually reinstated. Uniswap also encountered difficulties in obtaining a listing on Apple’s App Store.
The removal of these applications can be traced back to the Indian Financial Intelligence Unit’s (FIU) actions. The FIU issued show cause notices to offshore crypto trading platforms in December, citing non-compliance with India’s Prevention of Money Laundering (PML) Act. The FIU expressed concern that these entities were not getting registered under the necessary regulatory frameworks despite catering to a significant number of Indian users. Consequently, the regulator requested the Ministry of Electronics and Information Technology to block these firms’ URLs.
Crypto exchange platforms operating offshore should take steps to comply with local regulations to ensure the protection of their Indian users. Ashish Singhal, the co-founder and CEO of CoinSwitch, advised impacted exchanges to actively consider registering with the FIU-IND and adhering to India’s anti-money laundering (AML) and countering the financing of terrorism (CFT) measures. This would not only enhance consumer protection but also enable greater regulatory oversight of the ecosystem.
The removal of crypto exchange applications from the Indian App Store reflects Apple’s stringent stance on cryptocurrency. While Binance and other impacted exchanges reassured their existing app users that they would work with regulators to resolve the issue, questions remain about the future of crypto apps in India. As the regulatory landscape evolves, it is crucial for offshore exchanges to comply with local regulations and prioritize user protection. The crypto industry must navigate these challenges to ensure the continued availability of services and foster a secure environment for Indian users.
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