Google Removes Cryptocurrency Apps in India: Growing Scrutiny on Operations
In a significant move reflecting the growing scrutiny on cryptocurrency operations, Google has removed several cryptocurrency-related applications from its Play Store in India. This action follows a series of warning notices sent by the Indian finance ministry to nine virtual digital assets (VDAs) service providers last month, citing potential violations of the country’s anti-money laundering regulations. Apple Inc. had earlier taken similar steps, pulling major offshore crypto exchanges like Binance, Kucoin, and OKX from its App Store in the country.
Indian Finance Ministry Warns Virtual Digital Assets (VDAs) Service Providers
The clampdown has affected several high-profile applications, including Binance, Kucoin, Houbi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex. These platforms reportedly operated without proper registration and adherence to local tax laws. In response to the alleged irregularities, the finance ministry urged the Information Technology Ministry to block the URLs of these exchange websites, suspecting them to be channels for money laundering activities.
High-Profile Crypto Platforms Banned: Failure to Register and Pay Taxes
The Ministry of Electronics and Information Technology (Meity) executed these app removals on Dec. 28 post the issuance of show-cause notices. Google’s decision is perceived as part of a larger initiative to ensure adherence to its policy standards. The finance ministry’s Financial Intelligence Unit (FIU) had raised concerns about the potential misuse of these apps in money laundering schemes. Binance reacted to the removal of its app from Apple’s App Store on Jan. 10, reassuring users:
Please note that existing app users will not be impacted. We will continue to work with regulators to resolve the situation and will share updates here.
Rest assured that your funds are SAFU.
Google Play Store Joins Apple in Removing Offshore Crypto Exchanges
The finance ministry clarified that offshore and onshore VDA service providers in India must register with FIU-India and conform to the Prevention of Money Laundering Act (PMLA), 2002. As a pivotal national agency, the FIU is instrumental in identifying and communicating information regarding suspicious financial transactions.
Compliance and Vigilance: Tech Giants Support Regulatory Clampdown
Cryptocurrency and blockchain applications have been gaining traction for financial and investment purposes. The apps offered crypto trading, portfolio management, and price tracking services. As these platforms grow in significance, regulatory agencies are increasingly vigilant to ensure compliance and prevent misuse.
Removing these applications from Google and Apple app stores underscores the tech giants’ readiness to comply with the authorities’ concerns. This move, in line with the finance ministry’s directive to limit access to these apps and URLs, highlights the imperative for companies dealing in virtual digital assets to adhere to local regulations and proactively address illicit activities.
Analyst comment
Neutral news.
As an analyst, the market for cryptocurrency in India may be temporarily affected as Google and Apple remove cryptocurrency-related applications from their stores. This reflects growing scrutiny on cryptocurrency operations and highlights the need for companies to adhere to local regulations. However, the market will likely adapt as cryptocurrency platforms work with regulators to resolve the situation and ensure compliance.
