Cryptocurrency investors predominantly use mobile applications for their transactions. However, legal disputes with global exchanges have led some regions to take steps to enforce bans, with India at the forefront, even convincing Google to remove related apps from its Play Store.
Google has removed apps belonging to major global exchanges such as Binance and KuCoin from the Indian Play Store, following Apple’s similar action. India is excluding global exchanges for non-compliance with its laws, signaling a clear stance in the ongoing battle against crypto exchanges.
The primary goal appears to be to prevent capital outflow, as evidenced by previous raids on WazirX, India’s largest crypto exchange, which was scrutinized for allegedly facilitating illegal money transfers abroad.
Yet, claiming that crypto tokens or stablecoins sent to centralized exchanges result in capital flight is challenging, as these assets reside on the blockchain, irrespective of whether they are held in local or centralized exchange wallets.
India’s Financial Intelligence Unit (FIU) notified exchanges like Binance and Huobi of illegal operations in December 2023. While India has not announced a comprehensive crypto ban, it is exploring ways to curb the growing interest in cryptocurrencies, especially among its vast low-income population. Despite imposing a 30% crypto tax and a 1% transaction fee, investors have numerous alternatives, including over-the-counter (OTC) trades, showing the resilience of crypto against such regulatory pressures.