India Demands $86 Million from Binance for Taxes

India’s Directorate General of GST Intelligence (DGGI) has issued a notice to Binance, demanding a payment of about $86 million for Goods and Services Tax (GST).

This is the DGGI’s first major move against a cryptocurrency firm, marking a significant development in regulatory enforcement.

The notice addresses GST on fees collected from Indian users trading virtual assets on Binance’s platform. Despite Binance’s extensive global presence and substantial market share, it had not registered for GST in India, leading to this regulatory action.

Reports indicate that Binance earned approximately $476 million from transaction fees in India, with these earnings routed through its Seychelles-based subsidiary. In response, Binance has hired local legal counsel in India to resolve the issue.

READ MORE:

Elon Musk vs. OpenAI: The Legal Feud Returns

Earlier this year, Binance also faced a fine from India’s Financial Intelligence Unit (FIU) for non-compliance with anti-money laundering regulations. The FIU has stressed the need for improved compliance from Binance under the Prevention of Money Laundering Act (PMLA).

This scrutiny aligns with a global trend of increasing regulatory pressure on cryptocurrency exchanges. For instance, Binance was recently charged with tax evasion in Nigeria for avoiding Value-Added Tax (VAT) and Company Income Tax.

Alexander Stefanov