The Indian government has demanded $86 million in unpaid taxes from Binance, a major cryptocurrency exchange, before it can resume operations in the country.
This is the first time the Indian government has directly targeted a cryptocurrency company with such a tax demand.
Earlier this year, in January 2024, Binance and other crypto projects were banned from operating in India due to non-compliance with local regulations.
The Directorate General of Goods and Service Tax Intelligence (DGGI) claims that Binance earned Rs 4,000 crore (about $540 million) from transaction fees charged to Indian customers.
However, these earnings were reportedly credited to a company based in Seychelles.
Indian law requires a 1% tax to be deducted at source on every crypto transaction and a 30% tax on profits.
While local exchanges like WazirX and CoinDCX comply with these regulations, international exchanges like Binance have not.
Binance attempted to pay $2 million in fines to resume its operations but must now settle the $86 million tax demand.
Other foreign crypto exchanges operating in India are expected to face similar tax demands soon.
In addition to its troubles in India, Binance is also dealing with tax evasion and money laundering charges in Nigeria, where one of its staff members has been imprisoned.
Binance is the world’s largest cryptocurrency exchange, holding 40% of the global market share and operating in 150 countries with over 90 million users.
