India Knocks on Binance’s Door, Demands $86M in Unpaid Taxes

Key Takeaways

• India imposes $86 million tax on Binance for alleged GST evasion.
• SEC retracts securities allegations against certain crypto tokens.
• Potential shift in US crypto regulation as SEC revises lawsuit.

India is tightening its grip on cryptocurrency regulations, and Binance is the latest to feel the heat  from an $86 million tax bill.

The tax demand, issued by the Ahmedabad unit of the Directorate General of GST Intelligence (DGGI), stems from Binance’s alleged failure to comply with the Indian GST framework, particularly in handling transactions from Indian users.

India Slaps Binance with a $86M Tax Bill Amid Regulatory Tightening

The DGGI’s action against Binance is based on accusations  that the exchange collected fees from Indian customers trading in virtual digital assets (VDAs) without proper GST registration.

The tax recovery notice demands $86,033,159 in Goods and Services Tax (GST), which Binance allegedly evaded.

The tax bill from the Indian government is a clear assertion of India’s regulatory authority over international crypto platforms that serve Indian customers.

Binance Under Scrutiny

With a market share of about 40% globally and operations in over 150 countries, Binance is a titan in the cryptocurrency world. However, its extensive reach does not exempt it from facing regulatory challenges in various countries.

The exchange is currently involved in several legal disputes around the world, particularly in the U.S. and Nigeria. However, its woes in America may soon end.

Recently, the US Securities and Exchange Commission (SEC) made a landmark amendment to its ongoing lawsuit against Binance a year after the case was initially filed.

According to a joint status response submitted in the U.S. District Court for the District of Columbia on July 30, the regulator has opted to retract its allegations that certain tokens, which it had previously classified as securities, are such.

Binance’s troubles in Nigeria, on the other hand, are only intensifying. The exchange’s Head of Financial Crime Compliance, Tigran Gambaryan, has been held in Nigeria since February on allegations of money laundering.

Recent reports indicate that Gambaryan appeared frail and was seen in a wheelchair during the exchange’s recent money laundering trial at the Federal High Court in Abuja.

The case will be at a standstill until October 2024, as Nigerian High Court judges are scheduled for an extended vacation from July 23 to mid-September.

About the Author

Teuta Franjkovic

Teuta is a seasoned writer and editor with more than 15 years of experience. She has expertise in covering macroeconomics and technology as well as the cryptocurrency and blockchain industries. She has worked for several publications as a journalist and editor, including Forbes, Bloomberg, CoinTelegraph, Coin Rivet, CoinSpeaker, VRWorld and Arcane Bear. Teuta began her professional career in 2005, working as a lifestyle writer at Cosmopolitan in Croatia. From there, she branched out to several other publications, covering mainly business and the economy. She then turned her attention to the world of cryptocurrency and blockchain, believing that crypto is among the most important inventions in the history of humanity. Her involvement in fintech began in 2014 and she has since lent her expertise in writing, editing and gathering information about the world of crypto, blockchain, NFTs and Web3. An all-round news hound, mentor, editor, and writer, Teuta enjoys teamwork and good communication. She holds a WSET2 diploma and has a thing for chablis, punkrock music and shoes. She also holds a double MA in Political science and Entrepreneurship.

See more

[email protected] LinkedIn Twitter