Google follows Apple in pulling crypto apps in India

Representations of cryptocurrencies

Google has followed after Apple in removing a number of major crypto exchange apps from the Google Play Store in India, after regulators deemed them as operating illegally in the country.

On January 10, after India's Financial Intelligence Unit decided that nine crypto exchanges failed to comply with anti-laundering laws and requested to block access to the websites, Apple pulled nine cryptocurrency apps from the App Store. Days later, and Google has done the same.

Multiple exchanges were taken down from the Google Play Store covering India on Saturday, reports TechCrunch, including Binance, Kraken, Huobi, Gate.io, Bittrex, and Bitfinex.

While the FIU's request to India's IT Ministry was to block websites for nine services, it is unclear whether the request also involved the removal of access to associated apps. Neither Google nor Apple have confirmed a request was made for the app takedowns.

The reason for the takedowns is largely due to India's implementation of 30% capital gains tax and a 1% transaction levy introduced on cryptocurrencies in 2022. Following the introduction, local cryptocurrency traders moved to more global platforms that didn't necessarily meet know-your-customer protocols associated with India's Prevention of Money Laundering Act.

By sidestepping scrutiny of transactions, regulators apparently feel the moves by traders mirrored classic tax avoidance behavior.