The entire Cryptocurrency ecosystem has been performing quite badly in the Indian market. And with the latest bans placed on multiple crypto apps by the FIU (Finance Intelligence Unit), the industry is dwindling on its last legs.
At one point in the past decade, India was called the second-largest crypto market in the world. But recently, it had been building up towards an industry-wide crackdown.
And now with top crypto apps such as Binance being pulled from both Google and Apple app stores in the country, this is a clear signal for a total exit of the crypto ecosystem from the digital Indian economy.
It’s a Crackdown
It’s one thing to underperform and quit, but completely another when the government’s official finance team performs a complete ban on top crypto operators. A total of nine cryptocurrency trading apps including Binance, Kraken, Bittrex, and Huobi have been removed from app stores and websites blocked.
Binance has acknowledged the ban and is yet to take further steps. This process officially began last month, when the FIU show-caused these crypto trading platforms for not complying with anti-money laundering laws, and within two weeks these apps were removed as considered illegally operating in South Asia.
What is the Fate of Indian Crypto Apps?
Homegrown crypto apps such as CoinDCX and CoinSwitch Kuber have heavily upgraded their KYC and verification processes to ensure they stay within the FIU’s laws. The banned apps were all offshore exchanges operating within India, and it was relatively easier to sign up and use them.
So, the question remains whether these apps will return with an updated verification process for users.
Troublesome History With Crypto
There was a blanket ban on crypto trading by the RBI 5 years ago. While the Supreme Court ultimately removed this, the existence of foreign crypto trading platforms has always been a shaky situation. The Indian central bank was never truly in favour of a crypto market being set up in the country, and there were various laws and taxes placed on the operators for running their platform on Indian app stores.
But now it’s a total exit. While Indian crypto owners can still trade using local apps, the users who operate solely off operators such as Binance will have an uncertain future. India may not be fully done with crypto, but it is surely being pushed to a corner of the digital economy.
Manager Research & Editor, Industry Media Solution Group – CyberMedia Research