India has sent Binance a $86 million tax bill, accusing the exchange of failing to register under India’s GST regime.
Binance, the world’s largest crypto exchange, has experienced another dip in India.
The Indian authorities have issued a staggering $86 million tax bill to the Titan Exchange in response to non-compliance issues.
India Issues Tax Bill On Binance
The Indian government has issued a substantial tax bill to Binance, the world’s largest crypto exchange.
The Ahmedabad unit of the Directorate General of GST Intelligence (DGGI) has issued a show cause notice to Binance, requesting $86,033,159 in Goods and Services Tax (GST).
The tax recovery notice results from allegations that Binance collected fees from Indian users who traded virtual digital assets (VDAs) on their platform without registering under the Indian GST framework.
This action has illustrated India’s efforts to bring cryptocurrency operations into its tax regime.
Binance, which has an estimated 40% market share in the global cryptocurrency market and operates in over 150 countries, is currently under scrutiny from Indian tax authorities, which is not unusual.
This new bill pushed by the Indian government will essentially assert its regulatory authority over international crypto platforms serving Indian users.
This development represents a significant milestone in India’s strategy for regulating the rapidly growing virtual currency market within its borders.
It may also establish a precedent for how other countries handle global cryptocurrency exchanges operating within their borders.
In light of recent events in the Indian cryptocurrency market, this is fairly normal.
Most recently, a prominent exchange in India, WazirX, was hacked, resulting in the theft of millions of users’ funds.
India’s Crypto Policy Development
Concurrently, India’s financial regulators are taking measures to implement a more comprehensive policy for cryptocurrencies.
The Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) are collaborating with other government bodies to establish the country’s approach to digital assets.
In an interview conducted last month, Economic Affairs Secretary Ajay Seth revealed that a discussion paper outlining the government’s stance on cryptocurrencies is anticipated to be released before September 2024.
This document aims to seek feedback from various stakeholders on potential regulations for India’s crypto policy.
