Apple Blocks Foreign Crypto Exchange Apps In India

JAKARTA - Apple, a giant US technology company, recently took decisive steps to block foreign crypto exchange applications popular from its App Store in India. The move comes after the Indian government demanded that the crypto exchanges register with financial regulators in the country, or face blocking their websites.

At the end of December 2023, the Ministry of Finance's Financial Intelligence Unit (FIU) of India sent notifications to nine foreign crypto exchanges, namely Binance, Huobi, Kraken, KuCoin, Bitstamp, Gate.io, MEXC Global, Bittrex, and Bitfinex. The notice alleges that the crypto exchanges operate illegally in India without having registration in accordance with anti-money laundering laws and terrorism financing prevention.

The FIU also asked the Indian Ministry of Electronics and Information to block URLs from these crypto exchanges if they do not comply with the requirements to register as reporting entities, report suspicious transactions, pay taxes, and share information with Indian authorities.

Responding to these demands, Apple removed applications from the crypto exchanges from its App Store in India, so new users can no longer download or update the app. However, users who have previously downloaded the app can still use it, or access these crypto exchanges through the web browser or Google Play Store.

Apple's decision has had a negative impact on crypto investors in India, who rely heavily on foreign crypto exchanges to transact at lower costs and avoid high taxes. According to data from CoinGecko, the daily trading volume on India's local crypto exchange has fallen by about 40% since the FIU notification was issued, while trading volume on foreign crypto exchanges has increased by about 20%.

The Indian government's crackdown on foreign crypto exchanges reflects the country's ambivalent stance on the crypto industry, which is still in the legal gray zone. India does not yet have a special law governing crypto, despite some pending bill in parliament. India also plans to launch an official digital currency issued by the central bank.

The foreign crypto exchange affected by Apple's blocking responded calmly and expressed its commitment to complying with Indian law while minimizing disruption to their services. Binance, one of the largest crypto exchanges in the world, acknowledged the blocking, but guaranteed that its services are still operating normally in India.

"We are aware of the new changes that have been implemented regarding crypto exchanges on the iOS App Store in India, affecting the Binance App. The ongoing situation is not unique to #Binance and we remain committed to complying with local regulations and maintaining dialogue with..." wrote Binance South Asia's statement via the X @BinanceDesi account, January 10, 2024.

Binance also expressed a collaborative approach in solving this regulatory issue, by establishing communication with Indian regulators and crypto communities.