Google has now followed Apple's example and removed multiple cryptocurrency exchange apps, including Binance and Kraken, from its Play Store in India, suggesting that the troubled times for the industry are far from finished. This action follows show-cause notifications that the Financial Intelligence Unit (FIU) of the Indian Finance Ministry sent to these exchanges for engaging in unapproved operations in India. The FIU's move, according to the reports, is motivated by worries about potential violations of India's anti-money laundering laws. Nine offshore cryptocurrency exchanges have been singled out by the agency, and it has recently asked the Ministry of Electronics and Information Technology (MeitY) to restrict their URLs from within India. The letter also highlights India's strict regulatory policies around cryptocurrencies, which have changed over time. The Reserve Bank of India once banned cryptocurrencies, but the Supreme Court overturned that decision a few years ago. The removal of these apps from popular digital platforms will only worsen the regulatory problems currently plaguing the Indian cryptocurrency business. The Government's hopes for the web3 have been further dashed by the crackdown, especially in light of the 30% capital gains tax and 1% transaction levy on cryptocurrencies that are part of the legal environment. Notably, trading activity on domestic cryptocurrency platforms has already significantly decreased as a result of the strict controls.

The core of the matter is adherence to India's anti-money laundering regulations. While foreign cryptocurrency exchanges have been flagged for non-compliance, Indian cryptocurrency exchanges such as CoinSwitch Kuber and CoinDCX have followed stringent identification verification procedures.Due to this, local traders who were looking for less restrictive platforms have shifted to these international ones, raising the possibility of regulatory arbitrage and possible tax evasion. The recent actions made by digital behemoths such as Apple and Google in reaction to directions from the Indian government highlight how unstable the bitcoin market is in India. The Indian authorities have sent a clear message with their enforcement proceedings against offshore exchanges for violating AML and CFT legislation. Respect for consumer protection laws and regulatory standards is essential for the growth of the cryptocurrency business in India.