Binance, the largest cryptocurrency exchange in terms of daily trading volume, has assured Indian users of the safety and security of their accounts and funds.
The move follows the delisting of several major cryptocurrency service providers from Apple’s App Store, including Kucoin and OKX.
Apple, based in Cupertino, California, said the decision was taken following a show-cause notice from India’s Ministry of Finance for violations of money laundering laws.
Binance, which has no official headquarters, claims that India has the largest number of cryptocurrency users in the world.
Binance is Committed to Compliance
After Apple removed at least three foreign cryptocurrency exchanges from its Indian app store, Binance wrote a blog post confirming the situation to its Indian customers.
The company clarified that this limitation only affects users trying to access the Indian iOS app store or the Binance website from India.
Notably, existing users of the Binance app are reported to be unaffected by the restrictions.
The cryptocurrency exchange also reaffirms its commitment to comply with local regulations and maintain ongoing communication with regulators globally.
Despite facing challenges, Binance expressed optimism about the potential of the Indian market. The company acknowledges that the current situation is not unique to Binance and emphasizes its commitment to local compliance, along with ongoing dialogue with regulators around the world to ensure the continued availability of its services.
Earlier this week, Apple removed Binance, Kucoin, and OKX from its Indian App Store following a show-cause notice previously issued by India’s Ministry of Finance to nine virtual digital asset (VDA) service providers.
The notice cited violations of anti-money laundering laws, leading the Financial Intelligence Unit (FIU) to request the Ministry of Electronics and Information Technology (MeitY) to block the company’s website.
The government is reportedly considering further measures, including potentially banning foreign cryptocurrency apps like Binance from operating in India if they are found guilty under the Prevention of Money Laundering Act (PMLA).
Meanwhile, the Reserve Bank of India (RBI) maintains a firm stance on cryptocurrencies, with Governor Shaktikanta Das reiterating in October that there was no change in its stance on banning cryptocurrencies.
An RBI official told Indian newspaper Hindustan Times in December that there may not be much benefit to treating cryptocurrency assets as regulated entities.
They suggest that, at best, they should be treated more like gambling tools.
Despite facing significant regulatory challenges, India surprisingly ranked first in Chainalytic’s 2023 Global Cryptocurrency Adoption Index. This is a rebound from the previous year, when India fell to fourth place in Chainalytic’s 2022 Adoption Index.
Indian government targets overseas cryptocurrency exchanges
In December 2023, India’s Ministry of Finance issued compliance notices to nine foreign cryptocurrency exchanges, including Binance, KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex, under the Anti-Money Laundering Act. I did. PMLA).
This notification has been delivered by the Financial Intelligence Unit (FIU) under the Ministry of Finance of India. At the same time, the government began taking steps to block the URLs of these exchanges.
The warning highlights concerns about exchange operations not complying with PMLA provisions.
The exchanges were given a specific time period to respond to these notices and the government urged the IT department to block access to the URLs. This development follows the FIU’s previous notices against exchanges for non-compliance with anti-money laundering laws.
The overarching goal of the Indian government’s actions is to ensure compliance with national regulations and curb unauthorized operations within the cryptocurrency space.
These actions represent proactive steps to strengthen the regulatory framework and maintain oversight of the rapidly evolving cryptocurrency landscape.