Google Follows Suit: Pulls Binance and Other Crypto Apps from its Indian Play Store

Google and Apple Remove Crypto Apps from Indian Play Store: The Ripple Effect on Cryptocurrency Landscape

In a synchronized move echoing recent actions by Apple, Google has now delisted various cryptocurrency apps, including prominent platforms like Binance, Kraken, and OKX, from its Indian Play Store. This follows the Indian government’s stringent stance on crypto exchanges operating “illegally” in the country, with the Financial Intelligence Unit (FIU) requesting a ban on nine such platforms.

The FIU’s directives, issued two weeks ago, targeted exchanges like Binance, Kraken, Huobi, Bitstamp, Gate.io, KuCoin, Bittrex, Bitfinex, and MEXC Global, alleging their failure to register and comply with national anti-money laundering (AML) and anti-terrorist financing regulations. The FIU insisted that exchanges offering services to Indian customers must register as “reporting entities” and, upon non-compliance, requested the Ministry of Electronics and Information Technology to block these websites.

Binance South Asia, quick to address the situation, acknowledged the IP block affecting several crypto firms, including Binance. However, they emphasized that this impact was limited to users attempting to access the Indian iOS app store or the Binance website from India. Existing users with the Binance app were assured that their accounts and funds remained unaffected.

The recent development is part of a broader challenge faced by India’s cryptocurrency industry, exacerbated by the government’s imposition of a 30% capital gains tax and a 1% tax deducted at source on transactions in 2022. These tax measures led domestic traders to seek refuge on offshore exchanges with more lenient Know Your Customer (KYC) protocols.

WazirX, a domestic crypto exchange, felt the repercussions as transaction volumes witnessed a significant downturn. The adverse market conditions forced WazirX to implement a drastic measure, resulting in a 40% reduction of its workforce. This downturn in a key domestic player’s fortunes underscores the vulnerability of the Indian crypto market to regulatory shifts.

India’s banking sector, led by Reserve Bank of India (RBI) Governor Shaktikanta Das, has consistently expressed anti-crypto sentiments. Governor Das has advocated for a complete ban on the crypto industry, categorizing crypto trade as “nothing but gambling.” This position is not new, as the RBI had imposed a banking ban on crypto transactions in 2018, which was later lifted by the Supreme Court of India in 2020.

The recent removal of crypto apps by Google and Apple intensifies the uncertainty surrounding the future of cryptocurrency trading in India. Industry leaders and participants have criticized the government’s harsh taxation policies and the mounting regulatory challenges, fearing that such measures may stifle the growth of the crypto sector in the country.

The crypto community in India, while grappling with these challenges, continues to advocate for more balanced and favorable regulatory measures. The need for constructive dialogue between regulators, industry players, and other stakeholders becomes increasingly apparent as the crypto landscape faces turbulence in one of the world’s largest markets.

In conclusion, the removal of crypto apps from the Indian Play Store by Google and Apple adds a layer of complexity to an already intricate regulatory landscape. It highlights the delicate balance needed to foster innovation and growth in the cryptocurrency sector while addressing legitimate concerns related to financial stability and illicit activities. As the situation unfolds, all eyes are on how Indian authorities navigate the evolving landscape of digital assets and blockchain technology.