The Apple application store in India has halted various cryptocurrency trading platforms. The decision was made following orders from the Ministry of Finance issued a notice against a dozen unlicensed trading platforms based out of foreign regions. On this account, the app store halted services for Binance, Bitget, Gate.io, MEXC, Huobi, and KuCoin among others.
The government of India had already issued a noncompliance notice against a dozen cryptocurrency trading platforms weeks ago. All of these platforms were off-shore companies that are now not accessible to native account holders in India.
The Financial Intelligence Unit (FIU) issued a notice against non-compliant trading platforms on 28th December 2023. These firms also include forums such as Bitstamp, Bitfinex, and Bittrex. The notification charged the firms with operating in an illegal capacity within the region.
FIU Directs Crypto Trading Platforms to Acquire a Service License
FIU has advised the banned cryptocurrency trading platforms to acquire a trading license. The notification issued by the agency asserted that blocked companies have to register as a reporting entity and comply with income tax department requirements.
FIU also recommended Ministry of Electronics and Information Technology to revoke access to the nominated platforms on account of non-compliance within the region.
Meanwhile, other OS service providers such as Google Play Store and web versions have not blocked access to these platforms. CoinDCX, a local cryptocurrency trading platform hailing from India recently commented on the matter.
Founder Sumit Gupta shared a plan for investors who wish to transfer their accounts and holdings from offshore trading platforms to the local and regulated trading platforms. The Indian government also introduced a 30% tax on cryptocurrency trading and 1% tax deductible for every crypto transaction.
Crypto Trading Volume in India Declines Following Stringent Taxation Requirements
Following the introduction of heavy tax deductions on cryptocurrency trades, the trading volume within the region declined at a visible rate. It was a major region that cryptocurrency investors hailing from the region resorted to offshore trading platforms to circumvent sizeable tax payments.
However, the government has now cracked down against foreign trading platforms until they are added to the regulated section.
India recently hosted the G20 Summit and the Indian delegation called for global collaboration regarding crypto regulations. Meanwhile, the investors and stakeholders hailing from the region have demanded a balanced approach to regulating the crypto industry.
Upcoming Regulatory Bill
Regardless, the Finance Ministry is yet to present a crypto regulatory bill in parliament. On the other hand, the Binance wing of India has reassured its account holders that the application blocked in the region will not have a negative impact.
The platform further stated that the regulatory action is not specific to the platform and the administration is working with regulatory agencies in order to open dialogue and discuss regulatory concerns.
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