India escalates crackdown on offshore platforms, leading Apple Inc. to remove apps of exchanges like Binance from its App Store. Bitfinex, HTX (formerly Huobi), and Kucoin are among the eight exchanges affected by this significant escalation, as confirmed by sources familiar with the matter.
Binance off of Apple App Store in India?
The crackdown began on December 28 when Indian authorities notified nine exchanges of suspected misconduct. The Ministry directed Apple to remove offshore crypto apps, curbing their operations in India.
This crackdown has not only led to the removal of apps from the App Store but also prompted authorities to request Alphabet Inc.’s Google to follow suit. As of now, Google Play Store in India still features the exchange apps that were taken off the App Store. Apple, Google, and India’s technology ministry have yet to respond to requests for comment.
Global implications and Apple’s App Store cleansing
FIU India issued notices on Dec 28, urging nine offshore platforms to comply with anti-money laundering laws. The FIU also requested the information ministry to block the URLs of these entities. Despite these measures, the websites remain accessible from India.
Only Bitstamp remained on the local App Store as of Wednesday among the FIU’s listed exchanges. Kraken, another prominent exchange, had only its Pro version accessible. Binance, Bitfinex, KuCoin, Bitstamp, and Kraken have not responded to requests for comment, while HTX clarified that it has no operations in India.
India’s government had previously imposed money-laundering provisions on the crypto sector last year, part of its broader efforts to enhance oversight of digital assets, aligning with similar measures taken by other countries. In 2022, a 1% TDS levy hit local crypto exchanges, causing a sharp drop in trading.
Local exchanges worry TDS pushes traders to tax-free offshore platforms, hurting their revenue. According to Sumit Gupta, the CEO of CoinDCX, by October 2023, an estimated 95% of trading volume had shifted to offshore venues.
This latest crackdown represents a growing trend of nations worldwide asserting control over the cryptocurrency market. As India strengthens its regulatory framework, crypto enthusiasts and traders are left navigating a rapidly evolving landscape. The global crypto market awaits the impact of India’s measures, with experts monitoring developments and repercussions.
