Apple's recent action of removing prominent global cryptocurrency exchanges like Binance and Kucoin from its App Store in India comes in the wake of government scrutiny and show-cause notices sent to these platforms. The notices were issued by the Financial Intelligence Unit, operating under the Finance Ministry, addressing concerns about non-compliance with anti-money laundering laws and alleged illegal operations within the country.
The Financial Intelligence Unit issued notices to nine offshore virtual digital asset service providers, including Binance, for their purported operation in India without adhering to money laundering regulations. Apple, in response to these developments, made the decision to remove these crypto exchanges from its App Store in India. However, these apps remain accessible on Google's Play Store at present.
Furthermore, the Finance Ministry escalated the matter by urging the IT Ministry to block the URLs associated with these crypto companies due to their alleged illegal operations within the country. Binance, in particular, has been under scrutiny in the US, having pleaded guilty to violating anti-money laundering laws. The company's chief, Changpeng Zhao, resigned as part of a significant settlement following an investigation into the activities of the world's largest cryptocurrency exchange.
The Finance Ministry emphasized the necessity for both offshore and onshore Virtual Digital Asset service providers operating in India to register with the Financial Intelligence Unit-India. These providers are engaged in various activities, including virtual digital asset exchange with fiat currencies, transfer and management of these assets, or facilitating control over them. Compliance with the Prevention of Money Laundering Act (PMLA), 2002, is crucial, as stated by the Ministry.
The actions taken by both Apple and the government reflect a concerted effort to ensure compliance with financial regulations, particularly concerning cryptocurrency exchanges, in a bid to address potential money laundering risks and regulate the burgeoning crypto landscape within the country.
(With Agency Inputs)
