In the wake of India's recent ban on foreign cryptocurrency exchanges, Binance, the world's largest cryptocurrency exchange, has reassured its Indian user base about the safety and security of its accounts and funds. The exchange hinted that the challenge is unique to those trying to get app access via the Apple store and their accounts are the same as the Binance app is functional.
Background
The assurance comes in response to the delisting of nine crypto service providers, including Kucoin and OKX, from Apple's app store, after which their websites were blocked. The ban, implemented on January 12, 2023, by the Ministry of Electronics and Information Technology (MeitY), was prompted by inputs from the Finance Ministry's Financial Intelligence Unit (FIU), citing alleged money laundering activities and non-compliance with India's crypto laws. Google also followed suit with its Playstore removing the apps on Saturday. The FIU issued notices to the nine exchanges on December 28, asking for explanations for their operations in India without necessary permits or approvals. The ministry, acting on these recommendations, directed the blocking of URL access to these platforms.
Binances' Response
Binance, in a blog post, clarified that the restriction only affects users trying to access the Indian iOS app store or the Binance website from India. “Existing users who already have the Binance app are not affected. We remain committed to the adherence of local regulations and laws and we are dedicated to maintaining active communication with regulators to ensure user protection and the development of a healthy Web3 industry,” Binance said.
Experts advise not to opt for panic selling your assets but to move them to an Indian exchange or one's personal wallet. Once it is in a personal wallet, swapping or selling at an appropriate time can be done.
After the ban, a surge in registrations on domestic exchanges has been observed, indicating that investors are shifting to domestic platforms. Binance, claims India of having the highest number of crypto users in the world. According to industry estimates from the Economic Times, nearly USD 4 billion in crypto assets remain in offshore platforms, which users primarily did to evade the 1 per cent tax deducted at source, with Binance reportedly holding 80 per cent of this total.
