Apple App Store Takes Down Global Crypto Exchanges Apps In India

Apple has removed the mobile applications of prominent global cryptocurrency exchanges, including Binance, Kraken, Mexc, and Kucoin, from its App Store in India. 

This decision comes in the wake of increased regulatory scrutiny, with the Financial Intelligence Unit (FIU), an Indian government agency responsible for overseeing financial transactions, issuing show cause notices to nine crypto firms. 

These exchanges, deemed to be operating “illegally” in India, include Huobi, Gate.io, Bittrex, and Bitfinex.

“SEC Chair Gensler is not embracing crypto in the U.S., and it might even be a very long shot to expect that he would vote to approve bitcoin spot ETFs.”

– Matrixport

While Bitstamp, another exchange named by the FIU, remains accessible on the App Store, the apps of the other affected exchanges have disappeared. 

Notably, these apps are still available on the Google Play Store in India, and their respective websites remain accessible. Apple has yet to provide an official response to inquiries regarding this App Store removal.

Indian Government’s Firm Stand and Crypto Taxation

The Indian government’s stringent stance on cryptocurrency exchanges is evident in the recent actions taken by the FIU and the broader regulatory environment. 

Last year, India introduced taxes on virtual currencies, imposing a 30% tax on gains and a 1% deduction on each crypto transaction. In response to these tax regulations, many Indian traders reportedly migrated to global cryptocurrency platforms, seeking potential tax evasion.

Indian crypto exchanges, including CoinSwitch Kuber, CoinDCX, and WazirX, have diligently implemented rigorous know-your-customer verifications. 

However, global platforms have not uniformly adopted similar measures. This shift of traders to potentially non-compliant services prompted caution from Indian exchanges, warning the government about the repercussions, including users turning to decentralized exchanges.

“CoinSwitch and CoinSwitch PRO, as well as several other Indian VDA exchanges, are already compliant with India’s PMLA requirements for VASPs, and there is no reason why offshore exchanges shouldn’t do the same, should they wish to do business in India.”

“CoinSwitch and CoinSwitch PRO, as well as several other Indian VDA exchanges, are already compliant with India’s PMLA requirements for VASPs, and there is no reason why offshore exchanges shouldn’t do the same, should they wish to do business in India.”

– Ashish Singhal, Co-founder and CEO of CoinSwitch on x.

In response to the concerns raised, India’s largest crypto exchange, CoinDCX, announced an initiative to reward customers transferring their crypto assets from global exchanges to its India-based platform. 

The exchange has allocated $1 million for this incentive program.

Apple’s removal of these cryptocurrency exchange apps reflects a broader global trend of increased regulatory scrutiny and actions. While the apps are still available on other platforms and their websites accessible, the App Store purge signals a tightening regulatory environment for crypto services.