In a significant move, Apple has delisted leading global cryptocurrency exchanges like Binance and Kucoin from its App Store in India. This decision follows show-cause notices sent by the government to several crypto exchanges, citing non-compliance with the nation’s anti-money laundering laws and allegations of illegal operations within the country.
The Financial Intelligence Unit, operating under the Finance Ministry, initiated action against nine offshore virtual digital asset service providers, including Binance, for purportedly functioning in India without adhering to money laundering regulations.
While Apple refrained from immediate comments regarding the removal of these crypto exchanges from its App Store, these applications remain accessible on Google’s Play Store.
Last month, the Finance Ministry had urged the IT Ministry to block the URLs of these crypto firms, alleging their illegal operations within the country. Binance, a prominent exchange, has faced scrutiny in the United States after admitting guilt in violating anti-money laundering laws. Its chief, Changpeng Zhao, resigned as part of a multi-billion dollar settlement, culminating from an investigation into the operations of the world’s largest crypto exchange.
The Finance Ministry emphasized the necessity for both offshore and onshore Virtual Digital Asset service providers engaged in activities such as virtual asset-fiat currency exchanges, virtual asset transfers, and administration to register with the Financial Intelligence Unit-India. These entities are required to comply with the provisions outlined in the Prevention of Money Laundering Act (PMLA), 2002.
The move by Apple aligns with the government’s stringent stance on ensuring regulatory compliance within the rapidly evolving cryptocurrency landscape. With increased scrutiny and regulatory oversight, the government aims to uphold the integrity of financial regulations while addressing concerns related to money laundering and illegal operations in the crypto space.
Amidst these actions, the cryptocurrency community awaits further developments, including potential responses from the affected exchanges and the broader implications on the crypto industry’s operations within India.
