Binance, the largest cryptocurrency exchange globally, faces an $86 million tax bill from Indian authorities due to non-compliance issues.
The Directorate General of GST Intelligence (DGGI) in Ahmedabad has issued a notice to Binance, demanding $86,033,159 in Goods and Services Tax (GST). The issue arises from Binance allegedly collecting fees from Indian customers trading in virtual digital assets (VDAs) without proper GST registration. This move is part of India's broader effort to regulate cryptocurrency operations and enforce tax compliance.
Holding about 40% of the global cryptocurrency market and operating in over 150 countries, Binance is no stranger to regulatory scrutiny. The new tax bill underscores India's intent to assert its regulatory authority over international crypto platforms serving Indian customers. This significant development could influence how other nations regulate global cryptocurrency exchanges in their jurisdictions.
The Indian crypto market has seen recent turmoil, including a major hack of the local exchange WazirX, resulting in significant user fund losses. Meanwhile, Indian financial regulators, including the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI), are working on a comprehensive cryptocurrency policy to better manage digital assets in the country.
