India's First Tax Demand on Foreign Crypto Exchange: Binance Owes $86 Million
In today's news article, Coinmooner discusses the new difficulties faced by the Binance exchange. Currently, the company holds a leading position in its niche and, according to CoinMarketCap, has a 24-hour trading volume of $21,952,604,979. The platform has established itself as a reliable participant in the crypto space, allowing users to buy, sell, and store their digital assets and access over 350 cryptocurrencies and thousands of trading pairs. However, it constantly encounters regulatory and legal challenges in various regions.
Recently, it became known that Binance owes India $86 million in taxes from fees from 2017 to 2024. This is the first such demand made on a foreign crypto exchange. Last week, officials from the Ahmedabad office issued the corresponding notice due to suspicions of tax law violations.
This is not the first time Binance has faced problems in the Indian market. In June of this year, the company was fined $2.3 million for providing services to Indian clients without complying with anti-money laundering (AML) rules. As part of re-entering the market, Binance paid the fine and registered with the Financial Intelligence Unit (FIU).
Binance Under Scrutiny: Independent Tax Investigation Unfolds in India
While analyzing the situation related to Binance in the Indian market, our Coinmooner team discovered that the current tax investigation is being conducted independently of the FIU. Additionally, tax notices of this nature only sometimes result in fines. For example, earlier this month, the local company Infosys managed to challenge such a demand and dropped some of the charges, so it is currently unknown how the crypto exchange Binance will respond.
An interesting fact also emerged: preliminary data suggests that Binance earned more than $476 million (40 billion rupees) in transaction fees, which were transferred to Nest Services, part of the Binance Group based in the Seychelles.
Coinmooner has written several times about the problems the crypto exchange has faced recently. In one of our news articles titled "Changpeng Zhao: 4 Months Beyond - Sentencing for Former Binance CEO," you can read about how the former CEO of Binance went to prison due to fraud related to the exchange's activities.
In addition, we want to remind you, dear readers, that the Web3 industry is a very dynamic space, where not only the positive aspects of blockchain developments thrive, but also fraudulent schemes, which have become more sophisticated over the years. CoinMooner recommends using the most advanced protection methods to safeguard your finances.
