The recent removal of several cryptocurrency exchange applications from Apple’s Indian App Store has caused a stir in the crypto community. Binance, one of the largest crypto exchanges in the world, confirmed the removal and assured its users that the issue was being addressed with the regulators. This article examines the impact and implications of this incident on the crypto industry and the steps that affected exchanges can take to address the situation.
The removal of crypto-related applications from Apple’s App Store in India is not an isolated incident. Apple has consistently maintained a stringent stance on cryptocurrency, as evidenced by the temporary unavailability of Coinbase Wallet and Trust Wallet in 2022. Uniswap also faced difficulties in getting listed on the App Store earlier this year. This reflects the challenges faced by crypto exchanges in complying with regulatory frameworks, especially in countries like India.
The removal of these applications can be traced back to a show cause notice issued by India’s Financial Intelligence Unit (FIU) to offshore crypto trading platforms. The notice, sent in December last year, highlighted the non-compliance of these platforms with India’s Prevention of Money Laundering (PML) Act. The FIU raised concerns about offshore entities catering to Indian users without proper registration under regulatory frameworks. As a result, the FIU instructed the Ministry of Electronics and Information Technology to block the URLs of these platforms.
Implications for Exchanges
The removal of crypto exchange apps from the Indian App Store has significant implications for affected exchanges. It restricts their access to one of the largest smartphone user bases in the country. India has a growing interest in cryptocurrencies, and the removal of these apps may hinder the adoption and usage of cryptocurrencies among Indian users. It also raises questions about the overall regulatory environment for crypto exchanges in the country.
To address this situation, affected exchanges should prioritize compliance with local regulations. Ashish Singhal, the co-founder and CEO of CoinSwitch, advised offshore exchanges to actively consider registering with the FIU-IND and complying with India’s anti-money laundering (AML) and counter-terrorism financing (CFT) measures. Such compliance would not only improve regulatory oversight but also ensure greater consumer protection within the Indian crypto ecosystem.
The removal of crypto exchange apps from Apple’s Indian App Store highlights the challenges faced by the crypto industry in regulatory compliance. It calls for exchanges to engage in meaningful dialogue with regulators worldwide to ensure the availability of their services. While the impact of this incident on the crypto market remains to be seen, it underscores the need for greater clarity and consistency in regulatory frameworks governing cryptocurrencies. By proactively addressing compliance issues and prioritizing consumer protection, crypto exchanges can navigate the ever-evolving regulatory landscape and build trust among users and regulators alike.