India Takes Action Against Uncompliant Crypto Exchanges
Big tech companies like Google and Apple have responded to the crackdown on offshore crypto exchanges in India by removing several major crypto exchange apps from their app stores. This action comes after the Financial Intelligence Unit India (FIU IND) identified nine crypto service providers as operating illegally in the country. In addition, various telecom networks and internet service providers in India are blocking the websites of these affected crypto exchanges.
Google and Apple Remove Crypto Exchange Apps
Last Saturday, Google removed popular crypto exchanges such as Binance and Kraken from the Google Play Store in India. A few days earlier, Apple had already pulled crypto exchange apps from its App Store. Furthermore, various telecom networks and internet service providers in India have started blocking access to the websites of the affected crypto exchanges.
Indian Crypto Regulations
The crackdown on these crypto exchanges began in December last year when the FIU IND issued “compliance show cause notices” to nine offshore crypto firms. The Indian government requires all crypto service providers operating in the country to register with the FIU IND and comply with the regulations established by the Prevention of Money Laundering Act 2002. At the time, the Ministry of Finance announced that 31 crypto service providers had already registered with the FIU IND.
Affected Crypto Firms
The FIU IND sent notices to several major crypto exchanges, including Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex. These exchanges were identified as operating illegally in India.
Impact on Binance
Binance, one of the affected crypto exchanges, acknowledged that there is an IP block affecting crypto firms in India. However, this only affects users attempting to access the Indian iOS app store or the Binance website from India. Existing users who already have the Binance app are not affected. Binance assured its users that all funds are safe and that the situation is not exclusive to their exchange.
Hot Take: India Cracks Down on Uncompliant Crypto Exchanges
India’s efforts to regulate the crypto industry continue as major tech companies join the crackdown on uncompliant crypto exchanges. With Google and Apple removing crypto exchange apps from their app stores, and telecom networks blocking access to exchange websites, the Indian government is making it clear that compliance is necessary. This move aims to ensure that all crypto service providers operating in India adhere to the country’s regulations and counter money laundering risks. While this may cause inconvenience for users and crypto exchanges, it highlights the government’s commitment to regulating the crypto space within its jurisdiction.
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