- Google removes multiple crypto apps from its Play Store in India following regulatory warnings.
- High-profile platforms, including Binance and Kucoin, face the brunt of the clampdown as authorities demand compliance with local regulations.
In a notable development highlighting the intensifying focus on cryptocurrency operations, Google has taken a significant step by removing numerous cryptocurrency-related applications from its Play Store in India. This move comes on the heels of similar actions by Apple Inc., which recently removed major offshore crypto exchanges, including Binance, Kucoin, and OKX, from its App Store in the country.
Crackdown Targets High-Profile Platforms: Binance, Kucoin, and More
The recent clampdown has impacted several high-profile applications, with the likes of Binance, Kucoin, Houbi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex being among those affected. The trigger for these removals stems from alleged operations without proper registration and non-compliance with local tax laws.
The Indian finance ministry had issued a series of warning notices to nine virtual digital assets (VDAs) service providers, citing potential violations of the country’s anti-money laundering regulations.
Also Read: India Implements Ban on Offshore Crypto Exchanges Amid Regulatory Concerns
Ministry Takes Action: Crypto Apps Removals Follow Warning Notices
The Ministry of Electronics and Information Technology (Meity) executed the removal of these apps on December 28, following the issuance of show-cause notices. Google’s decision aligns with a broader initiative to uphold its policy standards.
The finance ministry’s Financial Intelligence Unit (FIU) had expressed concerns about the potential misuse of these apps in money laundering schemes. In response, the ministry urged the Information Technology Ministry to block the URLs of these exchange websites, suspecting them to facilitate illicit financial activities.
Binance, one of the affected platforms, addressed the situation on January 10, assuring users that existing app users would not be impacted. The statement conveyed the platform’s commitment to working with regulators to resolve the situation, with an emphasis on the safety of users’ funds.
Regulatory Framework: A Call for Compliance
The finance ministry clarified that offshore and onshore VDA service providers in India must register with FIU-India and adhere to the Prevention of Money Laundering Act (PMLA), 2002. As a pivotal national agency, the FIU plays a crucial role in identifying and reporting information related to suspicious financial transactions.
Tech Giants Respond: Compliance with Regulatory Concerns
Cryptocurrency and blockchain applications have gained prominence for financial and investment purposes, offering services such as crypto trading, portfolio management, and price tracking. As these platforms rise in significance, regulatory agencies are becoming increasingly vigilant to ensure compliance and prevent misuse.
The removal of these applications from Google and Apple app stores underscores the tech giant’s commitment to align with regulatory concerns. This move, coupled with the finance ministry’s directive to restrict access to these apps and URLs, emphasizes the necessity for companies dealing in virtual digital assets to adhere to local regulations and proactively address any potential illicit activities.