Apple’s App Store in India recently restricted access to crypto exchange apps such as Binance, KuCoin, Bitget, Huobi, OKX, Gate.io, and MEXC.
This decision comes just weeks after the Indian government issued a noncompliance notice to nearly a dozen offshore cryptocurrency exchanges.
The Financial Intelligence Unit (FIU) of the Indian Ministry of Finance issued a notice to several exchanges, including Binance, Huobi, Kraken, Gate.io, KuCoin, Bitstamp, MEXC Global, Bittrex, and Bitfinex, on December 28, 2023, for allegedly operating illegally in India.
The FIU emphasized that any exchange that caters to Indian users must register as a “reporting entity” and file tax returns with the IRS.
The Ministry of Electronics and Information Technology recommended blocking the websites of the mentioned exchanges for noncompliance in response to the FIU’s notice.
This block has now been implemented by Apple’s App Store, preventing new users in India from accessing these crypto exchange applications.
Although Apple has restricted these apps, they are still available on Google’s Play Store and via web versions.
Sumit Gupta, the founder of the Indian crypto exchange CoinDCX, shared his thoughts on the ban as well as a strategy for investors looking to transition from noncompliant offshore exchanges to compliant Indian exchanges.
Following India’s imposition of a 30% tax on crypto and a 1% tax deduction at source for every crypto trade, many Indian users have turned to foreign exchanges to avoid the strict tax regime.
The Indian government’s recent actions highlight the country’s growing need for clear crypto regulations. The Indian government recently called for global collaboration on crypto regulation at the G20 summit.
Despite assurances, there has been no tangible progress in India toward a balanced crypto regulatory framework.
Binance’s Asia-focused handle on X (formerly Twitter) acknowledged the app blockage in India but reassured existing users that the restriction would not affect them.
