Indian DGGI has accused Binance of collecting fees from its citizens without proper goods and services registration.
The world’s biggest crypto exchange, Binance, has unexpectedly been hit with a $86 million tax in India for offering crypto trading services to local traders without adequate registration. The exchange has challenged the tax notice, claiming its operations is in compliance with the country’s registration laws.
India Fines Binance $86M
Following the recent hack on the most prominent Indian exchange, WazirX, the country’s regulators are taking steps to regulate the growth and adoption of cryptocurrencies in the nation.
As part of the enforcement efforts, the Indian Directorate General of GST Intelligence (DGGI) wants Binance to pay a total of $86,033,159 in Goods and Services Tax (GST).
According to the regulator, Binance has allowed Indians to trade digital assets on its platform and collect fees from local traders without registering under the Indian GST framework.
Binance Opposes $86M Tax
According to an official involved in the matter, Binance has not unquestioningly agreed to pay the tax. The exchange has “challenged” the $86 million tax notice from the Indian DGGI.
The source noted that the Ahmedabad subsidiary of the DGGI issued the notice to Binance last week. The official further explained that Binance had avoided the tax between July 2017 and March 2024.
Notably, this is the second time India has fined the Binance exchange this year. Regulators banned the exchange for the first four months of the year for not adhering to Anti-Money Laundering (AML) laws. Binance settled the case in April, paying $2 million in fines. The exchange also pledged to operate completely under the rules and regulations governing India’s financial market.
Speaking on the matter, a Binance official noted that the exchange has always been committed to ensuring strict obedience to laws governing any country in which it functions. Binance currently operates in about 150 countries, though its founder, Changpeng Zhao, is currently facing a four-month jail term. is imprisoned.