Apple’s App Store in India has briefly banned multiple crypto exchange applications such as Binance, KuCoin, Bitget, HuobiOKX., Gate.IO, and MEXC. After the FIU received a notice from the Indian Ministry of Finance, this step involved singling out almost a dozen offshore crypto exchanges.
On the 28th of December, the FIU notice came out against exchanges such as Binance, Huobi, Kraken, and Gate. According to the FIU, any trade that serves Indian users must be classified as a “reporting entity” and file statements with the income tax department.
The FIU suggested that the Ministry of Electronics and Information Technology restrict access to these exchanges’ websites owing to their refusal. As a result, crypto exchange apps are now blocked for Indian users on Apple’s App Store. However, it’s also worth mentioning that these apps are still downloadable from the Google Play Store and through web versions.
Sumit Gupta, the founder of Indian crypto exchange CoinDCX, took to X (formerly Twitter) to share insights into the ban on foreign crypto exchanges. He outlined a plan for investors to transition from noncompliant offshore exchanges to compliant Indian ones.
[Community Update] Amidst the changing landscape of Indian VDA, where offshore exchange apps are now facing restrictions due to government directives, CoinDCX acknowledges the community's apprehensions. This is a defining moment for VDA in India, and we're dedicated to… pic.twitter.com/uTpxGqsHk0
— Sumit Gupta (CoinDCX) (@smtgpt) January 10, 2024
Binance Faces Regulatory Hurdles Amid Indian Crypto Taxation
India recently added a 30% tax on crypto and 1% TDS for every crypto transaction. The tax regime caused a substantial decline in crypto exchange volumes. Consequently, Indian users sought refuge in foreign exchanges as an alternative. The latest move effectively prevents the use of these foreign platforms.
The Indian government is urged to create an effective and thorough regulation system for the crypto industry. This recommendation comes in addition to current developments. The Indian cryptographic community wants guidelines, and conversations have occurred in the G20 summit. But still no crypto bill in parliament by the finance ministry.
Furthermore, in response to the app blockage, Binance’s Asia-focused handle posted a tweet assuring users that the existing user experience would remain unaffected. As the crypto landscape in India undergoes shifts, stakeholders are closely watching for further regulatory developments.
We are aware of new changes that have been introduced regarding crypto exchanges on the iOS App Store in India, impacting the Binance App.
The ongoing situation is not unique to #Binance and we remain committed to complying with local regulations and maintaining dialogue with…
— Binance South Asia (@BinanceDesi) January 10, 2024
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