Indian Authorities Demand $86 Million Tax from Binance

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Binance faces an $86 million tax demand from Indian authorities under the Goods and Services Tax (GST) framework. This comes as the crypto exchange seeks to reestablish its presence in the country, which has been marked by a challenging regulatory journey.

The return of Binance to India comes after Indian anti-money laundering (AML) agencies gave Binance the green light to resume operations.

However, this return isn’t without challenges. Indian authorities have issued an $86 million tax demand under the Goods and Services Tax (GST), highlighting the complex regulatory environment Binance must navigate.

On August 15, 2024, coinciding with India’s 78th Independence Day, Binance announced its reentry into the Indian market. The company sees this as a fresh start for cryptocurrency adoption in India, a rapidly growing digital economy. Yet, this fresh start is complicated by past issues.

The origins of this tax dispute can be traced back to December 2023, when India’s Financial Intelligence Unit (FIU) issued notices to several offshore crypto exchanges, including Binance, KuCoin, Bittrex, Gate.io and OKX, for operating illegally in the country.

The crux of the issue was the requirement for these exchanges to be registered as “reporting entities” in India, as they were allegedly not submitting routine statements to the Indian Income Tax Department.

This regulatory clash led to the removal of Binance’s mobile app from the Google Play Store and Apple’s App Store in India.

Just in – BINANCE sent out official email regarding FIU notice &