Binance, KuCoin, and MEXC apps have been removed from the Apple App Store in India. This action was taken just two weeks after FIU notice to nine offshore exchanges. However, Apple has not responded immediately until now.
It was a strict action, and people who already have it installed on their devices may continue operating this app. But it is a big move by the Indian government. Google may also follow this step to remove these apps from the Google Play Store to block apps for Android users.
Lots of traders in India moved to global cryptocurrency platforms to avoid paying taxes. India Tax system charge a 30% tax on profits and taking a 1% cut from every crypto transaction.
However, FIU notices to foreign exchanges have changed the minds of investors; now they are shifting their funds to Indian exchanges.
The Indian government seems to be gearing up for firm action against certain cryptocurrency exchanges. Despite issuing notices, these exchanges haven't provided any official statements. It's important to note that the government isn't against cryptocurrencies themselves; they're more concerned about ensuring the safety and security of their citizens.
This isn't the first time the Indian government has taken such decisive action. They previously banned various Chinese apps from platforms like the Google Play Store. This reflects their strong commitment to safeguarding their people from potential risks.
The government's goal here is for offshore exchanges to register with the Financial Intelligence Unit (FIU) and adhere to all the regulations put forth. To operate within the law, the most favorable path for these exchanges would likely involve setting up a separate entity within India to continue offering their services while complying with the country's regulations.
The most immediate step for global crypto exchanges would be to assess Indian regulations and consider cooperating with the government's directives. This could involve registering with the Financial Intelligence Unit (FIU) and adhering to the set guidelines. Establishing a transparent dialogue and showcasing a willingness to comply with local laws could potentially mitigate some of the issues.
Setting up a local entity or branch within India might be a strategic move for these global exchanges. This would allow them to operate within the regulatory framework specified by the Indian government while continuing to provide services to Indian users.
Engaging with Indian authorities and stakeholders to better understand their concerns and communicate their commitment to responsible and secure trading practices could help foster a more positive relationship. Educating users about compliance, security measures, and the benefits of operating within regulated frameworks could also be a focus.
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