Apple Blocks Offshore Crypto Exchanges in India After Gov Notice
Apple has taken a drastic step to remove several offshore cryptocurrency exchanges from its App Store in India, following a compliance notice from the Indian government. The affected exchanges include Binance, KuCoin, OKX, and others, which are among the most popular platforms for Indian crypto traders.
The move comes after the Financial Intelligence Unit (FIU) of India, which is part of the Finance Ministry, issued a show-cause notice to nine offshore crypto exchanges on December 28, 2023. The notice alleged that the exchanges were operating illegally in India without registering with the FIU and following the provisions of the Prevention of Money Laundering Act (PMLA) and the local tax rules.
The notice was sent to Binance, KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex. OKX, another major offshore crypto exchange, was not included in the notice but was also removed by Apple from its App Store in India.
What Made Apple to Block Offshore Crypto Exchanges Apps?
The notice from the FIU is a sign of the Indian government’s crackdown on the crypto industry, which has been growing rapidly in the country despite the lack of clear regulations. The government has expressed concerns over the potential risks of money laundering, tax evasion, fraud, and cybercrime associated with crypto transactions.
The notice also indicates that the government is not satisfied with the level of compliance and transparency of the offshore crypto exchanges, which may not have proper KYC and AML procedures and may not report their transactions to the authorities.
The announcement also puts pressure on the offshore crypto exchanges to either register with the FIU and follow the Indian laws, or exit the Indian market. The exchanges have been given 15 days to respond to the notice and explain their position.
The statement also paves the way for the government to block the URLs of the offshore crypto exchanges, which would make them inaccessible to Indian users. However, this process may take some time and may face legal challenges from the exchanges.
How are the Crypto Users Affected?
The removal of offshore crypto exchanges from the Apple App Store in India has affected the crypto users who rely on these platforms to buy and sell cryptocurrencies. The users may be unable to access the apps on their iPhones or iPads and may have to switch to other devices or platforms.
However, the offshore crypto exchanges are still available on the Google PlayStore, which means that Android users can still use them. However, this may change soon if the government decides to block the URLs of the exchanges.
Meanwhile, the Indian crypto exchanges, such as CoinDCX, Kuber, WazirX, and CoinSwitch, which have strict KYC and AML policies and comply with Indian laws, are still operating normally and have seen an increase in deposits and users after the FIU notice.
The crypto users in India are also waiting for the government’s decision on the legal status of cryptocurrencies, which may be announced in the upcoming budget session of the parliament. The government may introduce a bill to regulate or ban cryptocurrencies, which could have a significant impact on the crypto industry and the crypto users in India.
