The Indian Government Cracks Down on Crypto Exchanges
The Indian government has taken action against nine offshore crypto exchanges, including Binance, Kraken, and Huobi, for non-compliance with anti-money laundering laws. As a result, Apple has removed these apps from its App Store in India, signaling a significant change in the availability of crypto trading platforms in the country.
Crypto Exchanges Face Pressure to Register
The Financial Intelligence Unit (FIU), under the Ministry of Finance, requires crypto exchanges to register as “Reporting Entities” under the Prevention of Money Laundering Act (PMLA). Many offshore exchanges catering to Indian users have bypassed this registration. Indian consumers are advised to transfer their assets to FIU-registered exchanges to maintain control and avoid risks.
Apple Removes Offshore Exchanges
Following the FIU’s request, Apple has removed offshore exchanges like Binance, Kraken, and Huobi from its App Store. While the apps are still available on the Google Play Store and their websites remain accessible, new downloads are restricted.
Comply or Leave the Indian Market
India’s stance on cryptocurrencies has influenced global exchanges. Coinbase stopped onboarding new customers in India due to pressure from the central bank. The recent taxation policy on cryptocurrencies and stringent KYC verifications have also pushed traders towards global platforms.
Government Should Focus on Reducing Crypto Tax
Some community members believe that instead of removing exchange apps, the government should reduce crypto taxes. India currently holds the top position in Chainalysis’ 2023 global crypto adoption index.
Indian Exchanges Seek a Level Playing Field
Indian crypto exchanges want a level playing field as users shift to offshore platforms, affecting the revenue of Indian Virtual Asset Service Providers (VASPs). They argue that offshore exchanges should comply with India’s PMLA requirements if they wish to do business in the country.
Hot Take: India Cracks Down on Offshore Crypto Exchanges, Signaling a Shift in Accessibility
The Indian government’s crackdown on non-compliant offshore crypto exchanges has led to Apple removing these apps from its App Store in India. This move marks a significant change in the availability and accessibility of crypto trading platforms in the country. Indian consumers are now advised to transfer their assets to FIU-registered exchanges to maintain control and avoid risks associated with non-compliant platforms. While some community members believe the government should focus on reducing crypto taxes, Indian exchanges seek a level playing field with offshore platforms. Overall, this development reflects India’s evolving stance on cryptocurrencies and its impact on the crypto market.
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