Indian Authorities Fine Binance $86 Million for GST Compliance

India has imposed a fine of $86 million in taxes on Binance, demanding payment for Goods and Services Tax (GST) against fees collected from Indian customers trading digital assets.

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The Directorate General of GST Intelligence (DGGI) of India has issued a show cause notice to Binance, citing that those transactions conducted on Binance under the Online Information Database Access or Retrieval (OIDAR) services are subject to the GST in India.

Binance, however, has not yet registered under the Indian GST system. The DGGI had reached out to Binance affiliates in Seychelles, the Cayman Islands, and Switzerland for further investigation.

Previously, the Financial Intelligence Unit (FIU) had approved Binance’s registration as a Virtual Asset Service Provider (VASP). Despite this, Binance was charged around $2.2 million for not following anti-money laundering regulations.

Social Media Reactions

People have expressed mixed reactions on social media. IBC Group, a Web3 incubator and accelerator, believes that this is a bold move which signals a crackdown on global crypto exchanges, indicating that tax compliance is a big deal.

https://twitter.com/ibcgroupio/status/1820767281594438109

On the other hand, posts from other spectators like Pushpendra Singh (@pushpendrakum), co-founder of Pushpendra Singh Digital and SmartViewAi, drew a lot of flak from the mob. Some asked if they could pay back in crypto, while others believed that the crypto space in India is messy.

Crypto has been made such a mess in India. They dont create fertile environment for people to go legal and things to flourish.
Digital lathicharge, that entire industry got orphaned here.
— Abdullah (@Abdullah91Nft) August 6, 2024

The DGGI’s regulatory action highlights the increased scrutiny of cryptocurrency operations in India. The authorities have asked Binance to take care of the regulatory issues and implement stricter adherence to legal frameworks, especially with regard to governing financial transactions in India. Notably, this development represents a significant step toward cryptocurrency regulation in the country as a whole.

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GAIRIKA

Gairika is a cryptocurrency journalist with a focus on Bitcoin and blockchain technology.

Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is the official publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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