Google Removes Binance and Other Exchanges from Play Store in India
Google has taken down several major global cryptocurrency exchanges, including Binance and Kraken, from its Play Store in India. The move comes after allegations of these exchanges operating illegally and receiving show cause notices from the Financial Intelligence Unit (FIU).
Concerns over Non-Compliance with Anti-Money Laundering Rules
The FIU recently raised concerns about the non-compliance of these crypto firms with India’s anti-money laundering regulations. As a result, Apple also removed their apps, and telecom networks and internet service providers started blocking the affected exchange websites.
Impacted Exchanges and Binance’s Response
The list of affected exchanges includes Huobi, Gate.io, Bittrex, and Bitfinex. Binance clarified that the IP block only affects Indian users trying to access their iOS app store or website. Existing users with the Binance app are not affected. The company reaffirmed its commitment to following local regulations and maintaining communication with regulators.
Regulatory Arbitrage and Decline in Trading Volumes
This action by Google follows India’s implementation of a 30% capital gains tax and 1% transaction levy in 2022. As a result, many domestic traders shifted to global platforms with less stringent know-your-customer protocols. This, coupled with the overall crypto market downturn, has led to a significant decline in trading volumes for local exchanges.
Call for Regulations from the Indian Government
The Indian crypto community is urging the government to establish clear regulations. However, the stance of the Reserve Bank of India remains unchanged, as they view cryptocurrencies as potentially destabilizing emerging markets like India.
Hot Take: Google’s Removal of Crypto Exchanges in India
Google’s decision to remove Binance and other global crypto exchanges from its Play Store in India reflects the increasing scrutiny and regulatory challenges faced by the cryptocurrency industry. The actions taken by the FIU and Apple, along with the blocking of exchange websites, highlight the concerns surrounding compliance with anti-money laundering rules. This move underscores the need for clearer regulations in India to ensure a secure and transparent crypto ecosystem. As the Indian government grapples with these issues, it is crucial for industry players to work closely with regulators to foster user protection and promote the responsible growth of the Web3 industry.
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