Tech
Google removes Binance, Kraken and other foreign crypto apps from the Play Store in India
In the last days of December 2023, the Financial Intelligence Unit (FIU) of India’s Ministry of Finance issued a show-cause notice to nine offshore cryptocurrency exchanges, including Binance and Kraken, alleging that the exchanges had been involved in unauthorized operations in India. Now, Google has removed a number of crypto exchange apps from the Play Store in India. Last week, Apple also removed these apps – which include at least the 9 crypto apps that were banned – from its App Store in India.
The FIU had requested the Ministry of Electronics and Information Technology (MeitY) to block the URLs of nine cryptocurrency exchanges – including Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global and Bitfenex – all ‘internal India. This move is in response to suspected violations of Indian anti-money laundering regulations by the mentioned exchanges.
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“As part of the compliance action against offshore entities, the Financial Intelligence Unit India (FIU IND) has issued Show Cause compliance notices to the following nine Offshore Virtual Digital Asset Service Providers (VDA SPs) under Section 13 of Prevention of Money Laundering Act, 2002 (PMLA),” the FIU said in its official communication.
Service providers dealing in virtual digital assets, whether operating within India or beyond its borders, and engaging in activities such as currency exchanges from virtual digital assets to fiat currencies, virtual digital asset transfers, custody or administering virtual digital assets or enabling control over virtual digital assets, must officially register with FIU India as a “reporting entity”. Compliance with the specified requirements outlined in the Prevention of Money Laundering Act (PMLA) 2002 is mandatory for these entities.
According to the FIU communication, currently, 31 Virtual Digital Asset Service Providers (VDA SPs) have successfully registered with FIU India. However, several foreign entities, despite catering to a sizeable user base in India, have evaded registration, thereby operating beyond the ambit of anti-money laundering (AML) and countering the financing of terrorism (CFT) regulations.
The Financial Intelligence Unit (FIU) India functions as the primary national organization responsible for tasks ranging from receiving, processing, analyzing and disseminating information relating to potentially illicit financial transactions. This information is shared with both national law enforcement agencies and international financial intelligence units.
India has traditionally maintained a strict stance on cryptocurrencies and the entities that facilitate trading in them. The Reserve Bank of India imposed a ban on cryptocurrencies five years ago, which was later overturned by the Supreme Court. However, the central bank has continued to push the idea of outlawing cryptocurrencies, with its top officials drawing parallels between virtual digital assets and a Ponzi scheme.
Published by:
Nandini Yadav
Published on:
January 15, 2024