Apple has yet to comment on the removal of cryptocurrency exchange apps from its App Store in India. This comes as Binance South Asia X has noted a significant shift of Indian traders towards global cryptocurrency platforms, seemingly to avoid tax obligations. India introduced a 30% tax on virtual currency profits and a 1% deduction on each transaction last year.
Despite this, several India-based crypto exchanges, including CoinSwitch Kuber, CoinDCX, and WazirX, continue to enforce stringent know-your-customer (KYC) verifications for new users. However, many global platforms have not followed similar practices. As a result, WazirX has seen a 97% drop in trading volume over two years, partly due to traders migrating to global applications.
Ashish Singhal, the co-founder and CEO of CoinSwitch, has emphasized the importance of offshore exchanges adhering to India’s Prevention of Money Laundering Act (PMLA) requirements for Virtual Asset Service Providers (VASPs). Singhal believes that offshore exchanges should register with the Financial Intelligence Unit of India (FIU-IND) and comply with India’s Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) measures. This would not only benefit consumer protection but also ensure greater regulatory oversight within the cryptocurrency ecosystem.
Indian cryptocurrency exchanges CoinDCX and CoinSwitch Kuber had previously warned the New Delhi government about the potential consequences of its new taxation policy on cryptocurrencies. They suggested that such a policy might lead users to decentralized exchanges or non-compliant services. CoinDCX recently announced its intention to incentivize customers who transfer their cryptocurrency holdings from global exchanges to their India-based platform through reward programs.
India has historically maintained a stringent stance towards cryptocurrencies. Five years ago, the Reserve Bank of India (RBI) imposed a ban on cryptocurrencies, which was later overturned by India’s Supreme Court. However, the RBI continues to advocate for the prohibition of crypto assets, with senior officials likening these virtual digital assets to Ponzi schemes.
Internationally recognized cryptocurrency exchange Coinbase halted the onboarding of new customers in India last year. CEO Brian Armstrong alleged in 2022 that the company was facing “informal pressure” from India’s central bank. This illustrates the challenges faced by international exchanges in navigating India’s regulatory landscape, highlighting the complexities and pressures of operating within the country’s crypto market.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Asia |
| Countries | 🇮🇳 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Ashish Singhal, Brian Armstrong |
| Companies | Financial Intelligence Unit of India, CoinDCX, WazirX, Binance South Asia X, CoinSwitch Kuber, Reserve Bank of India, Apple, Coinbase |
| Currencies | None |
| Securities | None |
