The Indian cryptocurrency market has recently witnessed a significant development – the removal of various cryptocurrency exchange applications from Apple’s Indian App Store. This move has created considerable upheaval among crypto enthusiasts and raises questions about the future of digital currencies in India.
Apple’s Stringent Stance on Crypto
The deletion of crypto-related applications, including Binance, Kraken, MEXC Global, HTX, and Gate.io, from the Indian App Store aligns with Apple’s stringent stance on cryptocurrencies. Apple has previously demonstrated a cautious approach and revoked the listing of Coinbase Wallet and Trust Wallet in 2022, only to reinstate them later. Similarly, Uniswap also faced difficulties securing a listing on Apple’s App Store until April 2023.
Regulatory Concerns and Compliance
The removal of these applications appears to be a response to India’s Financial Intelligence Unit (FIU) show cause notice issued in December. The FIU cited non-compliance with the Prevention of Money Laundering (PML) Act by several offshore crypto trading platforms. It expressed concerns that numerous offshore entities were operating in India without registering under the necessary regulatory frameworks. As a result, the FIU instructed the Ministry of Electronics and Information Technology to block these platforms’ URLs.
While the impacted exchanges, like Binance and Kraken, have assured their existing users that their services remain unaffected, the incident highlights the importance of complying with local regulations. Ashish Singhal, the co-founder and chief executive of local crypto exchange platform CoinSwitch, advises offshore exchanges to register with the FIU-IND and adhere to India’s Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) measures. This level of compliance not only protects Indian users but also ensures greater regulatory oversight of the cryptocurrency ecosystem.
The removal of crypto exchange applications from the Indian App Store has undoubtedly posed challenges for both users and exchanges. However, it also provides an opportunity for the Indian government to lay down clear regulations and frameworks to govern the cryptocurrency market. By fostering collaboration and open dialogue between regulators and crypto exchanges, India can create a secure environment for digital currency transactions while ensuring the interests of all stakeholders are safeguarded.
Apple’s decision to remove crypto exchange applications from its Indian App Store reflects its cautious approach towards cryptocurrencies. This incident emphasizes the significance of complying with local regulations and highlights the need for greater regulatory oversight to protect users and maintain the integrity of the crypto ecosystem. With the development of robust frameworks and effective collaboration between regulators and exchanges, India can embrace the potential of digital currencies while mitigating associated risks.