Recently, Google Play Store in India removed the mobile apps of popular cryptocurrency exchanges Binance and OKX.
This action is because the Indian government has been warning people to stop using cryptocurrencies, and they are now taking strong action against those who don’t follow the rules. The App Store in India took off these apps in December 2023, which made it harder for these trading platforms to follow the rules.
The Indian government is being told that they are not following the rules
On December 28, 2023, the Indian government told some websites that let you trade digital money (like Bitcoin) to give them information.
The notice said that these exchanges were doing illegal operations in India and they needed to register as “reporting entities. ” Also, the FIU made them give their financial statements to the income tax department.
The FIU suggested blocking the websites of the exchanges because they didn’t follow the rules.
This notice was an important move by the Indian government to keep an eye on and control cryptocurrency transactions in the country.
Binance’s reaction and client affirmation
Even though the Binance app was taken off the Google Play Store in India, the company has done things to make sure its current users feel better. Binance South Asia talked about the app being blocked on X (formerly Twitter) and said they know about it. They also said they are keeping users’ accounts and money safe. This move is meant to make Binance’s users feel more confident, even though the company is facing some regulatory problems.
The effect of taxes on trading in cryptocurrencies
The Indian government is gaining more control over cryptocurrency exchanges at the same time as they are making new tax rules. In March 2022, the Indian government passed a new law that says people who have cryptocurrency have to pay a 30% tax on it. This big tax has had a big effect on how people trade cryptocurrency in India.
Under the new rules, traders can’t use losses to reduce their taxes, and each trading pair is taxed separately. This tax system caused a big drop in the amount of trading on Indian cryptocurrency websites. This made a lot of people start using crypto websites in other countries to avoid paying high taxes.