In a recent announcement, crypto exchange Binance confirmed that its application, along with several other foreign-based exchange applications, has been removed from Apple’s Indian App Store. This move comes as a result of new changes introduced by Apple regarding crypto exchanges on its iOS platform in India. The impacted exchanges include Kraken, MEXC Global, HTX (formerly Huobi), and Gate.io. Apple’s decision to remove these crypto-related applications aligns with its strict stance on cryptocurrencies.
Binance South Asia stated that they are aware of the changes and are committed to complying with local regulations and maintaining dialogue with regulators worldwide. They reassured their existing app users that they would work with regulators to resolve the issue. However, the removal of these apps from the App Store signifies an obstacle for crypto enthusiasts in India who rely on these platforms for trading.
The removal of these crypto exchange apps can be attributed to India’s Financial Intelligence Unit (FIU) show cause notice sent to several offshore crypto trading platforms in December of last year. The FIU highlighted the non-compliance of these platforms with India’s Prevention of Money Laundering (PML) Act and expressed concern over their lack of registration under the necessary regulatory frameworks. As a result, the regulator requested the Ministry of Electronics and Information Technology to block these platforms’ URLs.
Ashish Singhal, the co-founder and CEO of local crypto exchange platform CoinSwitch, advised the impacted exchanges to comply with local regulations in order to ensure the adequate protection of their Indian users. Singhal stated that offshore exchanges should consider registering with the FIU-IND and adhering to India’s Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) measures. This compliance would not only enhance consumer protection in India but also result in a greater regulatory oversight of the crypto ecosystem.
Apple’s decision to remove these crypto exchange apps from its Indian App Store is consistent with its long-standing strict stance on cryptocurrencies. In the past, Coinbase Wallet and Trust Wallet experienced a brief unavailability in the store before being reinstated in 2022. Similarly, Uniswap faced difficulties obtaining a listing on Apple’s App Store until April 2023. This indicates that Apple is cautious when it comes to allowing crypto-related applications on its platform.
The removal of crypto exchange apps from Apple’s Indian App Store raises concerns for crypto enthusiasts in the country. The decision comes as a result of non-compliance with local regulations by offshore platforms and the regulatory pressure exerted by India’s Financial Intelligence Unit. To protect Indian users and ensure regulatory oversight, impacted exchanges are encouraged to cooperate with local authorities and register with the FIU-IND. While Apple’s strict stance on crypto is evident, it remains to be seen how this move will impact the wider crypto ecosystem in India and whether alternative solutions will emerge to cater to the demand for crypto trading platforms.