Binance Accused of $86 Million Tax Evasion by Indian Authorities
Date: 2024-08-06 Author: Henry Casey Categories: IN WORLD
Cryptocurrency exchange Binance has found itself in the spotlight of Indian authorities over tax evasion allegations. India’s financial regulator, the Directorate General of Goods and Services Tax (DGGI), has served the company with a notice alleging that it owes the government $86 million.
According to information from CoinDesk, Binance has received a special notice from the DGGI, in which the regulator points out violations of the Goods and Services Tax (GST) for the period from July 2017 to March 2024. The notice states that the company collected fees from Indian users without a license, which is a violation of tax laws.
Violations in the Period 2017-2024
The Indian authorities believe that Binance has systematically evaded taxes for seven years, which has resulted in a significant debt to the state. Representatives of the DGGI are confident that the company violated the rules of working in the Indian market by collecting fees from clients without the necessary permits.
At the time of writing, Binance representatives have not provided official comments regarding the received notice. The company is under pressure from the Indian authorities, and further steps to resolve the situation remain unknown.
In December 2023, Binance and other international cryptocurrency platforms faced accusations from the Financial Intelligence Unit of India (FIU). The regulator announced that the companies were operating without a license and initiated the blocking of their online resources.
For several months, Binance and the Indian authorities were in dispute. As a result, the FIU approved the resumption of the exchange's work in the country, subject to the payment of a fine. In May 2024, FIU CEO Vivek Agarwal said that Binance had registered with the FIU, but the compliance process was still pending and the fine needed to be determined.
Registration and Fine
According to unconfirmed reports, Binance has agreed to pay $2 million to register with the FIU and has committed to comply with the Virtual Asset Provider Tax (VDA) rules. This agreement allows the exchange to continue operating in India while complying with local regulations.
It is worth noting that despite the current allegations, Binance has been actively cooperating with Indian authorities. For example, the company assisted in the investigation and recovery of $10.5 million stolen by fraudsters, which highlights its commitment to cooperation and compliance.
The tax evasion allegations pose serious challenges for Binance in India. The company faces significant financial pressure and the need to resolve disagreements with the authorities. At the same time, Binance has demonstrated a willingness to cooperate and comply with local laws, which may help it maintain its presence in an important market.
