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Google on Saturday pulled a number of crypto exchanges, including Binance and Kraken, from India's Play Store, the latest blow to India's already fading Web3 dreams.
The ban comes two weeks after the global companies were flagged for operating “illegally” in the country. Late last month, the Financial Intelligence Unit (FIU), India's government agency that scrutinizes financial transactions, issued show cause notices to nine crypto companies for failing to comply with India's anti-money laundering rules. Apple removed the app earlier this week, and on Thursday night Indian ISPs began blocking the URLs of cryptocurrency exchange websites.
FIU had asked India's IT Ministry to block the websites of all nine services in India. Other exchanges whose apps have been removed include Huobi, Gate.io, Bittrex, and Bitfinex.
“We are aware of an intellectual property block affecting many crypto companies, including Binance. This is only for users attempting to access the Indian iOS app store or Binance website from India. ” Binance said early Saturday.
“Existing users who already own the Binance app will not be affected. We remain committed to complying with local regulations and laws, and we remain committed to complying with regulations to ensure user protection and the development of a healthy Web3 industry. We are committed to maintaining active communication with authorities.”
Many Indian traders have been switching to global crypto platforms in recent quarters, apparently for tax evasion purposes. India started taxing cryptocurrencies last year, imposing a 30% tax on profits and a 1% deduction for each crypto transaction. India-based crypto exchanges including a16z-backed CoinSwitch Kuber, B Capital-backed CoinDCX, and former Binance partner WazirX continue to require strict customer verification before registering new users. , a platform that is not similar to many crypto exchanges in the world. (WazirX's trading volume has fallen by a staggering 97% in two years, due in part to many traders migrating to the global app.)
“CoinSwitch and CoinSwitch PRO, as well as several other Indian VDA exchanges, are already compliant with India’s PMLA requirements for VASPs, and if offshore exchanges want to do business in India, they should do the same. There is no reason not to,” CoinSwitch co-founder and CEO Ashish Singhal wrote about X earlier this week. “Offshore exchanges should actively consider registering with FIU-IND and comply with India’s AML and CFT measures. It’s also good for conservation.”
Indian crypto exchanges CoinDCX and CoinSwitch Kuber previously warned the New Delhi government that a new tax policy for cryptocurrencies could lead to more users moving to decentralized exchanges or seeking non-compliant services. He warned me that it was sexual. CoinDCX announced on Tuesday that it will offer rewards to customers who transfer crypto assets from global exchanges to its India-based platform.
India has historically taken a tough stance against cryptocurrencies and the companies that enable their transactions. The Reserve Bank of India implemented a ban on cryptocurrencies in the country about five years ago. The ban was ultimately overturned by India's Supreme Court, but the central bank has since continued to advocate for the outlawing of cryptocurrencies, with its executives likening virtual digital assets to pyramid schemes. .
Coinbase, another popular global cryptocurrency exchange, stopped accepting new customers in India last year. Coinbase CEO Brian Armstrong claimed in 2022 that the company was under “informal pressure” from India's central bank.
