Google and Apple have removed several cryptocurrency applications from their respective app stores in India. This action mainly targeted well-known global crypto exchanges, including the widely-used Binance app. These removals will lead to immediate repercussions in the Indian crypto market. It limits the options for Indian crypto enthusiasts.
India’s Financial Intelligence Unit (FIU) played a fundamental role in this decision with its concerns. The FIU is responsible for monitoring financial transactions in India. It alleged that these crypto platforms were not adhering to the country’s anti-money laundering (AML) regulations. The FIU issued show cause notices to nine crypto firms, including Binance, Kraken, Huobi, Gate.io, Bittrex, and Bitfinex. It questioned their compliance with India’s stringent financial regulations. The FIU has shown the importance of regulatory compliance in the digital currency sector.
This action will hugely impact Indian traders and investors:
This removal will reduce access for Indian traders and investors to global crypto platforms. It will directly affect their ability to diversify their cryptocurrency portfolios. Traders might miss out on many opportunities with fewer options available.
Platforms like Binance provide advanced trading tools and features. The removal of these apps will limit access to these tools and restrict the trading strategies of Indian users. It will decrease trading efficiency and effectiveness.
The removal will decrease market liquidity on Indian exchanges. Global platforms often bring significant trading volumes. Their absence could result in less liquid markets. Bid-ask spreads may widen and volatility may increase.
The shift to more regulated Indian platforms may threaten anonymity. Global platforms often offer more privacy than Indian exchanges with stringent regulatory requirements. It may discourage traders who prioritize anonymity in their trading activities.
It could isolate Indian crypto traders and investors from the global crypto market. Traders may miss out on global trends, insights, and collaboration opportunities. It could delay the overall growth and maturation of the crypto market.
India has always had a stringent view on cryptocurrencies. The government and the Reserve Bank of India (RBI) always try to regulate and restrict digital currencies. They are concerned regarding the stability and security of the financial system. They also fear the potential for misuse of cryptocurrencies in illegal activities. Some experts believe a balanced regulatory framework that protects consumers and promotes innovation is necessary. However, the future of cryptocurrency trading in India remains uncertain.
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