Google Removes Cryptocurrency Apps in the Middle of Regulatory Check in India

In response to harsh warnings from the Indian finance ministry to virtual digital assets (VDAs) service providers, Google has taken substantial action by banning many cryptocurrency-related applications from its Play Store in India.

The action was taken in response to Apple Inc.’s delisting of well-known offshore cryptocurrency exchanges from its Indian App Store, including Binance, Kucoin, and OKX. Nine VDAs received show-cause notifications from the finance ministry last month, claiming possible infractions of the nation’s anti-money laundering laws.

High-Profile Platforms Affected

Several notable platforms, such as Binance, Kucoin, Houbi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex, faced app removals as they allegedly operated without proper registration and adherence to local tax laws. The finance ministry urged the Information Technology Ministry to block the URLs of these exchanges, suspecting them to be conduits for money laundering activities.

The elimination of these applications by Google is viewed as a component of a larger effort to maintain its policy standards. The Financial Intelligence Unit (FIU) of the Finance Ministry has voiced concerns over the possible abuse of these applications in schemes aimed at money laundering. Following its withdrawal from the Apple App Store, Binance reassured its existing users that their money is still safe.

The finance ministry stated that both offshore and onshore VDA service providers in India must register with FIU-India and comply with the Prevention of Money Laundering Act (PMLA), 2002. As a key national organization, the FBI is essential in locating and disseminating information on questionable financial activities.

Regulatory bodies are become more watchful to guarantee compliance and stop any abuse as bitcoin and blockchain applications become more popular for financial and investing objectives. The apps that were impacted by this most recent change included price tracking, portfolio management, and cryptocurrency trading. The way that bitcoin activities are developing in India is reflected in this regulatory scrutiny.