Vipul Mishra
In a surprising and selective response to the Financial Intelligence Unit’s (FIU) recent crackdown on cryptocurrency exchanges, major players like Binance, Kucoin, and OKX have been removed from the Apple iOS Store, while remaining accessible on the Google Play Store. This partial delisting follows the FIU’s directive that these and other global exchanges were operating in violation of India’s anti-money laundering regulations.
The Financial Intelligence Unit India (FIU IND) identified nine significant global cryptocurrency exchanges, including Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, Mexc Global, and Bitfinex, as operating in contravention of the Prevention of Money Laundering Act (PMLA) 2002. Show Cause Notices were issued to these Virtual Digital Assets Service Providers (VDA SPs) for non-compliance.Upon FIU IND’s recommendation, the Director communicated with the Secretary of the Ministry of Electronics and Information Technology, urging the blocking of URLs of these entities. The intention was to enforce compliance among offshore entities involved in virtual digital asset services. All VDA SPs, regardless of their location, are required to register with FIU IND as Reporting Entities and adhere to obligations under the PML Act, including stringent reporting and record-keeping.
While 31 VDA SPs have registered with FIU IND, the selective delisting from the Apple iOS Store marks a major shift in India’s approach to regulating the cryptocurrency market. This decision significantly affects Apple device users, potentially leading to a shift in user behavior and market dynamics.
Gaurav Mehta, founder of Catax and an expert in blockchain auditing and taxation, commented on the development. “The selective removal of these cryptocurrency apps from the Apple iOS Store, while they remain on the Google Play Store, indicates a nuanced approach to regulation. It underscores the need for these platforms to align with local regulatory frameworks and take proactive action rather than waiting for government guidelines and Apple has shown leadership again” he noted.
This development highlights the complexities in regulating the cryptocurrency market in India, especially considering the varying policies of different app stores. It emphasizes the importance of compliance with national financial regulations and the evolving nature of digital asset management. How this partial delisting affects investor behavior and the broader crypto market in India remains a critical point of observation in the coming period.