In a recent move to enforce compliance with India’s financial regulations, Google has removed several major cryptocurrency exchanges from its App Store in India. This decision echoes a similar action taken by Apple Inc. last month when it withdrew access to prominent offshore crypto exchanges such as Binance, Kucoin, and OKX from its App Store in the country. The clampdown has significantly impacted high-profile applications, including Binance, Kucoin, Houbi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex.
This action follows a series of warning notices sent by the Indian finance ministry to nine virtual digital assets (VDAs) service providers, citing potential violations of the country’s anti-money laundering regulations. The finance ministry’s primary concern was that these platforms reportedly operated without proper registration and adherence to local tax laws. Consequently, the ministry urged the Information Technology Ministry to block the URLs of these exchange websites, suspecting them to be channels for money laundering activities.
The Ministry of Electronics and Information Technology (Meity) executed these app removals on December 28, following the issuance of show-cause notices. Google’s decision to remove these apps is perceived as part of a larger initiative to ensure adherence to its policy standards. The finance ministry’s Financial Intelligence Unit (FIU) had raised concerns about the potential misuse of these apps in money laundering schemes. In response, Binance, one of the affected platforms, reassured its users on January 10 following the removal of its app from Apple’s App Store.
The finance ministry clarified that both offshore and onshore VDA service providers in India must register with FIU-India and conform to the Prevention of Money Laundering Act (PMLA), 2002. As a pivotal national agency, the FIU plays a crucial role in identifying and communicating information regarding suspicious financial transactions.
Cryptocurrency and blockchain applications have been increasingly popular for financial and investment purposes, offering services like crypto trading, portfolio management, and price tracking. As these platforms grow in significance, regulatory agencies are becoming more vigilant to ensure compliance and prevent misuse.
The removal of these applications from both Google and Apple app stores underscores the tech giants’ readiness to comply with the authorities’ concerns. This move, in line with the finance ministry’s directive to limit access to these apps and URLs, highlights the imperative for companies dealing in virtual digital assets to adhere to local regulations and proactively address illicit activities.
