Apple did not immediately respond when contacted for comment on the removal of the cryptocurrency trading app from its Indian App Store.
Binance South Asia X administrator tweeted:
regulatory dilemma
In recent years, a large number of Indian traders have turned to utilizing global cryptocurrency platforms, seemingly as a means of evading tax obligations. India taxed virtual currencies last year, imposing a 30% tax on profits and a 1% tax on each crypto transaction. While several Indian cryptocurrency exchanges, such as a16z-backed CoinSwitch Kuber, B Capital-backed CoinDCX, and WazirX, which previously partnered with Binance, continue to implement strict know-your-customer (KYC) verification for new user onboarding, many global Platforms do not adhere to similar practices. As a result, WazirX’s trading volumes have plummeted by 97% in two years, partly due to traders migrating to the global app.
Ashish Singhal, Co-Founder and CEO, CoinSwitch Emphasis on platforms such as CoinSwitch and CoinSwitch PROand other Indian virtual digital asset (VDA) exchanges, have complied with India’s Prevention of Money Laundering Act (PMLA) requirements for virtual asset service providers (VASP). Singh stressed that offshore exchanges must emulate and meet these regulatory standards if they intend to operate in India. Singhal stressed that offshore exchanges should consider registering with the Financial Intelligence Unit of India (FIU-IND) and comply with India’s anti-money laundering (AML) and combating the financing of terrorism (CFT) measures. Singhal said this approach would not only benefit consumer protection within India but also ensure greater regulation within the cryptocurrency ecosystem.
Two prominent Indian cryptocurrency exchanges, CoinDCX and CoinSwitch Kuber, had previously warned the New Delhi government about the potential consequences of its newly implemented tax policy on cryptocurrencies. They warn that such policies could push users toward decentralized exchanges or non-compliant services. Recently, CoinDCX made an announcement stating that it intends to incentivize customers who move their cryptocurrency holdings from global exchanges to the Indian platform through a rewards program.
India has historically maintained a strict stance on cryptocurrencies and entities that facilitate their trade. About five years ago, the Reserve Bank of India (RBI) imposed a ban on cryptocurrencies within the country. Although the ban was later overturned by India’s Supreme Court, the Reserve Bank of India continues to advocate for a ban on crypto assets. Senior officials within the central bank even compared these virtual digital assets to a Ponzi scheme.
Globally recognized cryptocurrency exchange Coinbase stopped recruiting new customers in India last year. Coinbase CEO Brian Armstrong claimed in 2022 that the company faced “informal pressure” from the Reserve Bank of India. Coinbase’s move illustrates the challenges international exchanges face in India’s regulatory environment, highlighting the complexities and pressures of operating in the country’s cryptocurrency market.
