Apple’s App Store in India has taken a decisive step, blocking the applications of major crypto exchanges, including Binance, KuCoin, Bitget, Huobi, OKX, Gate.io, and MEXC. This move follows a notice from the Indian Ministry of Finance’s Financial Intelligence Unit (FIU) against nearly a dozen foreign non-registered crypto exchanges. Effective immediately, these exchange apps are no longer accessible to new users in India.
The FIU’s notice, issued on December 28, 2023, targeted Binance, Huobi, Kraken, Gate.io, KuCoin, Bitstamp, MEXC Global, Bittrex, and Bitfinex for allegedly operating illegally in India. According to the FIU, any exchange offering services to Indian users must register as a “reporting entity” and submit statements to the income tax department. The FIU recommended that the Ministry of Electronics and Information Technology block the websites of these exchanges for noncompliance.
While Apple’s App Store has enforced the ban on the FIU-notified crypto exchanges, they remain accessible on Google’s Play Store and through web versions.
Sumit Gupta, founder of Indian crypto exchange CoinDCX, shared his thoughts on the ban via X (formerly Twitter). He outlined a plan for investors looking to transition from noncompliant offshore exchanges to compliant Indian platforms.
This development comes on the heels of India imposing a 30% tax on crypto and a 1% tax deduction at source for every crypto trade. In response, many Indian users had turned to foreign crypto exchanges to circumvent the hefty tax regime. However, with this recent action, the use of foreign exchanges is now prohibited.
The Indian government’s move aligns with the growing demand for crypto regulations. At the recent G20 summit, the Indian government called for global collaboration in shaping crypto regulatory frameworks. Despite repeated assurances, the Indian finance ministry has yet to present a crypto bill to the parliament.
We are aware of new changes that have been introduced regarding crypto exchanges on the iOS App Store in India, impacting the Binance App.
The ongoing situation is not unique to #Binance and we remain committed to complying with local regulations and maintaining dialogue with…
— Binance South Asia (@BinanceDesi) January 10, 2024
As of now, Binance has not responded to Cointelegraph’s request for comments.
