Several crypto exchanges, including the world’s largest, Binance, have had their mobile applications removed from the Apple App Store in India following allegations of illegal operations. The development came after India’s Financial Intelligence Unit (FIU) issued notices to nine crypto firms in December 2023, claiming non-compliance with anti-money laundering regulations.
The FIU also requested the Indian Ministry of Electronics and Information Technology to block website access to these exchanges from within the country. Despite these actions, the mobile applications of the implicated exchanges remain available on Google Play Store in India, and their websites are still accessible, indicating ongoing regulatory scrutiny.
Among the exchanges notified by the FIU are Huobi, Gate.io, Bittrex, and Bitfinex. However, TechCrunch reports that Bitstamp’s app continues to be available on the Indian App Store despite being labeled as operating illegally by the FIU.
Data suggests that Indian investors are turning to global crypto exchanges, potentially to circumvent tax measures imposed by the Indian government. This shift became evident after India introduced a 30% tax on crypto earnings and a 1% transaction fee last year.
Local exchanges like CoinSwitch Kuber, CoinDCX, and the former Binance-affiliated WazirX enforce strict KYC verification for new users, unlike many global exchanges. The trend is highlighted by WazirX’s transaction volume plummeting by 97% in two years, partly due to investors moving to global platforms in search of more user-friendly options and to avoid the constraints of local exchanges.