In a significant move that reflects the growing scrutiny on cryptocurrency operations, Google has removed several cryptocurrency-related apps from the Play Store in India.
The action follows a series of warning notices sent by the Indian Finance Ministry to nine virtual digital asset service providers (VDAs) last month, citing potential violations of the country's anti-money laundering regulations. Apple Inc. has taken It earlier made similar moves, pulling major overseas cryptocurrency exchanges such as Binance, Kucoin, and OKX from their app store in the country.
The campaign affected several prominent apps, including Binance, Kucoin, Houbi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex. These platforms were reportedly operating without proper registration and compliance with local tax laws. In response to the alleged irregularities, the Ministry of Finance urged the Ministry of Information Technology to block the URLs of these exchange websites, suspecting them to be channels for money laundering activities.
The Ministry of Electronics and Information Technology (Meity) implemented these app removals on December 28 after issuing showcause notices. Google's decision is seen as part of a larger initiative to ensure adherence to its policy standards. The Financial Intelligence Unit of the Ministry of Finance has raised concerns about the potential misuse of these applications in money laundering schemes. Binance reaction to remove its app from the Apple App Store on January 10, reassuring users:
Please note that existing app users will not be affected. We will continue to work with regulatory agencies to resolve the situation and will share updates here.
Rest assured that your money is SAFU.
Binance South Asia
The Ministry of Finance explained that external and internal VDA service providers in India The FIU in India must register and comply with the Prevention of Money Laundering Act (PMLA), 2002. As a nodal national agency, the FIU plays an essential role in identifying and communicating information relating to suspicious financial transactions.
Cryptocurrency and blockchain applications are gaining momentum for financial and investment purposes. The apps provided cryptocurrency trading, portfolio management, and price tracking services. As these platforms grow in importance, regulatory bodies are becoming increasingly vigilant to ensure compliance and prevent abuse.
The removal of these applications from the Google and Apple app stores confirms the willingness of the technology giants to comply with the authorities’ concerns. This move, which is in line with the Ministry of Finance's directives to limit access to these applications and URLs, highlights the need for companies dealing in virtual digital assets to adhere to local regulations and proactively address illicit activities.
