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It has been revealed that the mobile applications of various cryptocurrency exchanges, including the world’s largest exchange Binance, as well as other major platforms such as Kraken, Mexc, and Kucoin, have been removed from the Apple App Store in India. This development followed the announcement that these cryptocurrency exchanges were operating illegally in the country.
Mobile Apps of Major Cryptocurrency Exchanges Removed from Apple App Store
India’s Financial Intelligence Unit (FIU), the government body responsible for examining all financial transactions in the country, issued show-cause notices to nine cryptocurrency companies in December 2023. The notices claimed that these platforms were not in compliance with India’s anti-money laundering regulations. Subsequently, the FIU requested the Ministry of Electronics and Information Technology of India to block access to the websites of nine cryptocurrency exchanges from within the country.
Among the cryptocurrency exchanges mentioned in the FIU’s notice are Huobi, Gate.io, Bittrex, and Bitfinex. According to TechCrunch, the mobile application of the Bitstamp exchange continues to be available in the App Store in India, despite being marked by the FIU as operating illegally.
Although the mobile applications of the mentioned cryptocurrency exchanges have been removed from the Apple App Store, they are still available on the Google Play Store in India and their websites can be accessed within the country. This situation demonstrates the intense regulatory scrutiny that cryptocurrency exchanges in India are facing and the potential impact of these reviews on the availability of their mobile applications.
Indian Investors Chase Global Cryptocurrency Exchanges
Data suggests that Indian investors are turning to global cryptocurrency exchanges potentially to circumvent tax practices implemented by the Indian government. This trend started after India introduced various taxes last year, including a 30% tax on cryptocurrency gains and a 1% deduction on each cryptocurrency transaction.
Local cryptocurrency exchanges such as CoinSwitch Kuber backed by a16z, CoinDCX backed by B Capital, and the former WazirX connected to Binance are conducting strict KYC verification for new user registration, while a similar level of scrutiny is not being applied by many global cryptocurrency exchanges.
This trend is clearly visible with WazirX’s trading volume dropping by an extremely high rate of 97% within two years, partly due to a large number of investors moving to global cryptocurrency exchanges. The tax regulations introduced and the search for more user-friendly platforms have pushed Indian investors to explore alternatives beyond the confines of local cryptocurrency exchanges.
