In a move mirroring Apple’s recent decision, Google’s app store, Google Play, has taken steps to eliminate Binance and several other cryptocurrency exchanges, such as Kraken, from its platform within India.
The removal of these exchanges comes in response to a ban initiated by the Indian government, which flagged nine crypto exchanges, including Binance, Kraken, Huobi, Bitstamp, Gate.io, KuCoin, Bittrex, Bitfinex, and MEXC Global, for allegedly operating “illegally” in the country. India’s Financial Intelligence Unit (FIU) issued notices in December, asserting that these exchanges failed to register and comply with national anti-money laundering (AML) and anti-terrorist financing regulations. The FIU requires exchanges serving Indian customers to register as “reporting entities,” and failing to do so prompted a request to the Ministry of Electronics and Information Technology to block their websites due to non-compliance.
According to reports, Google’s decision to ban these crypto exchanges from its Indian Play Store closely follows Apple’s move, both occurring two weeks after the Indian government’s initial flagging of these platforms.
Responding to the ban, Binance South Asia assured users that their accounts and funds remain secure, explaining that the IP block only affects users attempting to access the Indian iOS app store or the Binance website from India. Binance South Asia emphasized that this situation is not unique to Binance and impacts other players in the web3 industry. The exchange is actively working to engage in constructive policy-making for the benefit of users and market participants.
India’s stringent crypto regulations have prompted a significant shift in the behavior of many Indians who turned to global crypto platforms after the government imposed a 30% capital gains tax and a 1% tax deduction at source on every transaction in 2022. The burdensome tax policies forced domestic traders to migrate to offshore exchanges with less stringent know-your-customer (KYC) protocols, resulting in reduced transaction volumes for domestic crypto exchange WazirX, which consequently laid off 40% of its staff due to declining market conditions.
The Indian banking sector has consistently expressed reservations about cryptocurrencies, with the Governor of the Reserve Bank of India (RBI), Shaktikanta Das, calling for a complete ban on the industry, characterizing crypto trade as “nothing but gambling.” Governor Das recently reiterated his stance, emphasizing the perceived threat crypto poses to financial stability. These stringent crypto taxation policies and anti-crypto sentiments have drawn criticism from industry leaders, warning that such measures may impede the growth of the crypto industry within the country.
