In a significant move reflecting India's increasing regulatory scrutiny over cryptocurrency exchanges, the Bybit app was removed from the Apple iOS App Store on March 22. This development, fueled by growing regulatory concerns within the country's Web3 domain, has sparked widespread speculation and unease among the crypto community.

Regulatory Shadows Over Crypto: Bybit's App Store Exit Stirs Market Uncertainty

In a recent report by CoinGape, the crypto community was shocked when the Bybit app disappeared from the Apple App Store. The exact cause of this recent development is unknown, but netizens believe it is due to increased regulatory uncertainty in India.

Pushpendra Singh, co-founder of Smart View AI, wrote to X, "Due to regulatory uncertainty, On March 22 #Bybit crypto exchange app has been removed from the Apple App Store in India." However, the Bybit app remains available for Android users on the Google Play Store.

The Bybit Pro app is also available in the Apple App Store. Furthermore, users who downloaded Bybit on iOS or Android have not reported any issues. Moreover, the URL of the Bybit website is easily accessible.

However, Bybit's removal from the App Store is a significant development that has added to India's regulatory concerns. The move has triggered a wave of speculation about the next steps the regulators might take toward Bybit. This uncertainty has unsettled the crypto community and raised questions about the future of foreign cryptocurrency exchanges in India. In addition, OKX is reportedly preparing to shut down its operations in India, further adding to the regulatory turbulence.

Moreover, the recent crackdown on foreign cryptocurrency exchanges has left the Web3 community needing clarification. Users have reported being unable to access Binance, KuCoin, Gate.io, OKX, and several other cryptocurrency exchanges, including Bybit. This has significantly disrupted their digital currency trading activities. If Bybit is forced to exit India or is banned, these users will bear the brunt of the regulatory actions.

FIU Targets Offshore Crypto Exchanges: A Turning Point in India's Regulatory Landscape

In a significant move in late December 2023, the Financial Intelligence Unit (FIU) initiated action against foreign cryptocurrency exchanges operating in India. Notices were sent to prominent platforms such as Binance, Gate.io, Kucoin, and Huobi, alleging that their operations in India were illegal through offshore entities. These notices were issued under Section 13 of the Prevention of Money Laundering Act of 2002, marking a crucial step in the government's efforts to regulate the cryptocurrency market.

This regulatory action subjected virtual digital asset service providers to scrutiny under the Anti-Money Laundering/Counter-Terrorism Framework (AML-CFT). The FIU highlighted these exchanges' failure to meet reporting obligations to the Indian government despite purported compliance with Indian law.

Furthermore, the FIU urged the Ministry of Electronics and Information Technology (MEITY) to block the websites of the notified cryptocurrency exchanges within two weeks. According to a CNN report, as a result, in January 2024, the website URLs and applications of Binance, OKX, KuCoin, and others were rendered inaccessible. Furthermore, these CEX applications vanished from the Google Play Store and Apple App Store, just as Bybit did.

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