Google has removed several cryptocurrency-related apps from the Play Store in India. The finance ministry sent warning notices last month to nine virtual digital assets (VDAs) service providers, saying they might have broken the country’s money laundering rules. Apple had taken similar steps, removing offshore crypto exchanges like Binance, Kucoin, and OKX from its App Store in India.
Binance off of Apple app store
The affected apps, including prominent names like Binance, Kucoin, Houbi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex, were served notices for operating illegally by not registering and adhering to local tax regulations. The finance ministry told the information technology ministry to stop these exchange websites by blocking their URLs. They suspected that these websites might be involved in some sort of money laundering issues.
Responding to the removal of its app, Binance communicated directly with its users through an email, stating, “Dear Binancian, We are aware of an IP block affecting a number of crypto firms, including Binance. This only impacts users who attempt to access the Indian iOS app store or the Binance website from India. Existing users who already have the Binance app are not affected.”
They continued, “We remain committed to the adherence of local regulations and laws and we are dedicated to maintaining active communication with regulators to ensure user protection and the development of a healthy Web3 industry. The ongoing situation is not unique to Binance and impacts other web3 industry players as well. We are working hard to engage in constructive policy-making that seeks to benefit every user and all market participants. All user funds are safe.”
Play store followed suit
The Ministry of Electronics and Information Technology (Meity) took action on December 28, 2023, following the show-cause notices. The removal of these crypto apps is believed to be part of a broader initiative by Google to enforce compliance with its policies. Sources suggest that the move came after the finance ministry’s FIU raised concerns about these apps potentially being used for money laundering.
According to an official statement from the finance ministry, offshore and onshore VDA service providers operating in India must register with FIU-India and comply with the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The FIU, a national agency, plays a crucial role in identifying and disseminating information related to suspect financial transactions to enforcement agencies and their foreign counterparts.
Cryptocurrency and blockchain apps are becoming more popular for financial and investment needs. The affected apps offered services such as crypto trading, portfolio management, and price tracking. Regulatory agencies are actively trying to assure compliance and stop any exploitation as these platforms become more significant.
The internet behemoths’ cooperative response to the authorities’ concerns is demonstrated by the withdrawal of these programs from the app stores of Google and Apple. The finance ministry’s instruction to limit URLs and the apps that were removed as a result. Showcasing how important it is for companies that offer virtual digital assets (VDAs) to follow local regulations and take proactive steps to halt any illegal conduct.
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