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Writer's picturemeowdini
Aug 62 min read

Binance Challenges $86M Tax Notice from Indian Authorities

Binance is contesting an $86M tax showcause notice from India's DGGI, alleging it collected fees from Indian traders between 2017-2024. Learn more about the case here.

Binance, the world's largest cryptocurrency exchange, is challenging an $86 million tax showcause notice issued by India's Directorate General of Goods and Services Tax Intelligence (DGGI). The notice, which spans the period from June 2017 to March 2024, alleges that Binance collected fees from Indian customers trading on its platform. This marks a significant development in the ongoing regulatory scrutiny of international crypto exchanges operating in India.


Binance logo on the facade of a building, representing the company's global presence and regulatory challenges.
Binance headquarters, where the world’s largest cryptocurrency exchange navigates complex global regulations.

Key Points:


  • Tax Showcause Notice: The DGGI issued an $86 million showcause notice to Binance, alleging tax evasion for fees collected from Indian customers from June 2017 to March 2024.


  • Binance’s Response: Binance is reviewing the notice and cooperating with Indian tax authorities. The company emphasizes its commitment to adhering to domestic legislation.


  • Previous Actions: In June 2024, Binance was fined $2.2 million for non-compliance with India's anti-money laundering rules. The current investigation by DGGI is separate from previous FIU actions.


  • Nature of Services: The fees in question relate to Online Information and Database Access or Retrieval Services (OIDAR), provided by Binance without a physical interface.


  • Historical Context: This showcause notice is reportedly the first issued to an international crypto exchange by the DGGI. Previous actions were primarily against Indian crypto exchanges.


  • Potential Outcomes: Showcause notices do not always lead to monetary penalties. Similar notices have been withdrawn after challenges, such as in the case of Infosys.



Binance’s challenge to the $86 million tax showcause notice from India’s DGGI highlights the increasing regulatory scrutiny faced by international cryptocurrency exchanges. While the outcome remains uncertain, Binance's cooperation with Indian authorities and commitment to compliance may influence future regulatory interactions. The case underscores the complex landscape of global crypto regulations and the ongoing efforts to ensure compliance across jurisdictions.


Source: Coindesk

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