In a latest development, Google and Apple have pulled several major crypto exchange apps, including Binance, Huobi, Gate.io, Bittrex, Bitfinex and Kraken, from their app stores last week. This follows a recent clampdown by the Indian government targeting foreign crypto platforms operating in the country.
The Financial Intelligence Unit (FIU), an Indian agency responsible for financial crime investigation, had earlier issued show-cause notices to nine international crypto exchanges, alleging non-compliance with anti-money laundering (AML) regulations.
The move was coupled with website blocking orders from Indian internet service providers which effectively restricted Indian users' access to these platforms.
The Play Store removal marks a significant escalation in the government's regulatory stance towards crypto. Apple also pulled the apps from it app store.
While India hasn't officially banned cryptocurrency, its actions indicate a cautious approach with concerns over financial stability and consumer protection. The removal of prominent apps like Binance, with its large Indian user base, suggests stricter scrutiny for foreign players in the future.
The crypto industry in India has expressed strong concerns about the recent developments. Industry representatives argue that the lack of clear regulatory guidelines creates uncertainty and stifles innovation. They urge the government to establish a framework that fosters responsible crypto adoption while addressing potential risks.
"CoinSwitch and CoinSwitch PRO, as well as several other Indian VDA exchanges, are already compliant with India’s PMLA requirements for VASPs, and there is no reason why offshore exchanges shouldn’t do the same, should they wish to do business in India,” Ashish Singhal, co-founder and chief executive of CoinSwitch, wrote on X earlier this week. “Offshore exchanges should actively consider registering with the FIU-IND and comply with India’s AML and CFT measures. This is also better for consumer protection in India since there will be greater regulatory oversight of the ecosystem."
The global crypto market has also reacted negatively to the news, with fears of similar crackdowns in other countries. Analysts believe this latest episode could further dampen investor sentiment and hinder wider crypto adoption.
India is the second-largest internet market in World. This regulatory crackdown comes two weeks after these global crypto exchanges were flagged for operating “illegally” in the South Asian market.
It remains to be seen how the Indian government will navigate this complex issue. Balancing innovation with regulatory oversight will be key to establishing a secure and sustainable crypto ecosystem in the country.