Bitcoin

The Directorate General of GST Intelligence (DGGI) in India has demanded a sum of $86 million in taxes from <a href="https://optimisus.com/news/crypto-news/binance-us-wins-court-approval-to-invest-40-million-of-customer-funds-in-us-treasury-bills-under-strict-conditions/" rel="noopener noreferrer nofollow">Binance, a prominent crypto exchange</a>. India’s tax authorities have targeted a large crypto business for the first time, establishing a regulatory precedent in the country.The Directorate General of Goods and Services Tax Intelligence (DGGI) has requested a payment of INR 722 crore, which is equivalent to nearly $86 million, for Goods and Services Tax (GST) obligations.Although Binance operates extensively across more than 150 countries and commands a market share of at least 40%, it has not yet registered under the Indian GST system.According to sources, Binance generated over INR 4,000 crore (~$476 million) in transaction fees from its Indian consumers. The proceeds generated from these fees were transferred to Nest Services Limited, a subsidiary of Binance Group located in Seychelles.The Ahmedabad zonal section of the Directorate General of Goods and Services Tax Intelligence (DGGI) has contacted Binance’s associates in Seychelles, the Cayman Islands, and Switzerland to conduct a more extensive inquiry. Binance has engaged the services of legal counsel based in India to address the substantial issue of tax compliance.The examination of <a href="https://optimisus.com/news/crypto-news/binance-to-delist-several-spot-trading-pairs-on-july-5th-2024/" rel="noopener noreferrer nofollow">Binance</a> is a component of a worldwide pattern in which cryptocurrency exchanges are subjected to stricter regulatory criteria. In March 2024, the Nigerian Federal Government levied allegations of tax evasion on Binance.Binance has been accused by the Federal Inland Revenue Service (FIRS) in Nigeria of deliberately avoiding payment of Value-Added Tax (VAT) and Company Income Tax.The position of Binance underscores the need to adhere to regulatory requirements for cryptocurrency exchanges on a global scale. In order to avoid legal disputes and financial sanctions, exchanges must ensure strict compliance with local laws as governments impose more controls.The growing level of regulatory scrutiny highlights the necessity for exchanges to allocate resources towards robust compliance procedures in order to effectively traverse the intricate and ever-changing regulatory environment.

India seeks over $80 million from Binance exchange for unpaid taxes

Optimisus

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