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Ten crypto exchanges, including Binance and KuCoin, have been blocked from Apple’s app store in India. India’s Ministry of Finance ordered their removal over non-compliance.
The removal occurs weeks after the Indian Ministry of Finance’s Financial Intelligence Unit (FIU) accused the exchanges of operating illegally in the country. The agency also accused the exchanges of failing to adhere to anti-money laundering rules.
FIU notified the exchanges on December 28, 2023, and requested the Ministry of Electronics and Information Technology to block them. According to FIU, exchanges operating in India should be registered as reporting entities and make filings with the income tax department.
Other targeted exchanges are Bitget, Huobi, Gate.io, OKX, Kraken, and MEXC. The blocking of the exchange applications means they will no longer be available to new Indian users.
Move seeks to increase compliance with Indian laws
India’s decision comes even as the country steps up crypto regulation and focuses on bringing exchanges into compliance, including eradicating tax evasion. The move comes as Indian crypto traders shifted their investments to offshore exchanges after the country imposed taxes on digital asset incomes in 2022.
Under the law, Indians are required to pay a 30% tax on crypto holdings and transfers. Traders also incur a 1% tax at source for each crypto trade made.
The move targeting offshore exchanges aims to level the playing field even as India continues to push for global collaboration in regulating the crypto sector. Conversely, although India’s local exchanges have faced stringent requirements, including KYC procedures, foreign platforms have operated outside the same scrutiny.
Following India’s decision, Binance South Asia took to X to reassure that its existing users won’t be affected. Binance said it is working to comply with the local regulations, promising to work with the regulators to resolve the situation.
We are aware of new changes that have been introduced regarding crypto exchanges on the iOS App Store in India, impacting the Binance App.
— Binance South Asia (@BinanceDesi) January 10, 2024
The ongoing situation is not unique to #Binance and we remain committed to complying with local regulations and maintaining dialogue with…
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