Binance’s Return to India After Ban Comes With $86Million Tax Demand By Authorities
However, the exchange’s return is overshadowed by an $86 million tax liability under the Goods and Services Tax, according to Coin Telegraph.
Launched on India’s 78th Independence Day, Binance’s re-entry into the Indian market signals a new chapter in crypto adoption for the rapidly growing digital economy.
However, the exchange’s return is overshadowed by an $86 million tax liability under the Goods and Services Tax, according to Coin Telegraph.
This development follows a lengthy regulatory process, which began in December 2023 when the Financial Intelligence Unit (FIU) of the Indian Ministry of Finance issued notices to several offshore crypto exchanges, including Binance, KuCoin, and others, for unauthorized operations in India.
The fallout from Binance’s regulatory issues in India extended to the removal of its app from the Google Play Store and Apple App Store in the country.
The core issue stemmed from Binance’s failure to register as a “reporting entity,” which meant it wasn’t submitting required statements to the Indian Income Tax Department.
This loophole allowed users to bypass Indian tax laws, including the 1% TDS levy and 30% tax on crypto transactions and digital asset transfers, enabling them to underreport their earnings.
Binance has taken significant measures to reestablish its presence in India, including paying a $2.25 million fine to the Financial Intelligence Unit (FIU) for violating Anti-Money Laundering (AML) regulations.
The exchange has committed to ongoing compliance with tax reporting requirements and maintaining robust AML and Countering the Financing of Terrorism controls.
Additionally, Binance has pledged to establish a cutting-edge Financial Crimes Compliance unit, aimed at supporting investigative agencies in combating crypto-related crimes and enhancing collaborative security within the ecosystem through capacity-building initiatives.
https://cointelegraph.com/news/binance-india-tax-demand-regulation
