Jobaaj Stories
This comes after a show-cause notice was sent on December 28 to nine such apps namely- Binance, Kucoin, Houbi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex for operating illegally in India by not registering and following local tax rules.
The apps are still available in India on the Google Play Store, as well as on their respective websites.
Many Indian traders have recently switched to global cryptocurrency platforms in an apparent attempt to evade taxes. India began taxing virtual currencies last year, with a 30% tax on gains and a 1% deduction for each crypto transaction.
While many global platforms have not required rigorous know-your-customer verifications before onboarding new users, India-based crypto exchanges such as a16z-backed CoinSwitch Kuber, B Capital-backed CoinDCX, and former Binance-partner WazirX do.
The Indian cryptocurrency exchanges CoinDCX and CoinSwitch Kuber had previously warned the New Delhi government that its new crypto taxation policy would drive many users to decentralized exchanges or non-compliant services.
CoinDCX announced on Tuesday that it will reward customers who transfer their cryptocurrency assets from global exchanges to its India-based platform.
Approximately five years ago, the Reserve Bank of India imposed a ban on the use and trading of cryptocurrencies within the country. In the past, India has always highlighted its tough stance towards cryptocurrencies and such companies that enable their trading.
Although the Supreme Court of India eventually overturned the initial ban, the country's central bank has continued to push for the prohibition of cryptocurrencies. Top officials within the central bank have compared virtual digital assets to Ponzi schemes.
Last month, the Financial Intelligence Unit, a government agency responsible for monitoring financial transactions, issued show-cause notices to nine cryptocurrency firms. The notices accused them of non-compliance with India's anti-money laundering regulations.
Also, Read, The Dark Side of Crypto Currency: The Great Fall which took millions
