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The Indian government has issued an $86 million tax bill to Binance, the world's largest cryptocurrency exchange, for GST violations.
India Levies $86M Tax
Binance, the biggest cryptocurrency exchange in the world, has been hammered hard in India again. The Indian government has levied a whopping tax bill of $86 million against the Titan exchange because of non-compliance issues.
According to Coingape, a hefty tax bill has been sent to Binance, the biggest cryptocurrency exchange in the world, by the Indian government. An order to show cause has been issued to Binance by the Ahmedabad branch of the Directorate General of GST Intelligence (DGGI), which is demanding payment of $86,033,159 in GST.
Allegations that Binance took fees from Indian users who traded VDAs on their platform without registering with the Indian GST framework led to the tax recovery notice. India has taken this step to show that it is trying to tax Bitcoin activity.
Regulatory Impact on Crypto
It is not new that Binance, the cryptocurrency exchange with operations in more than 150 countries and an estimated 40% market share, is under investigation by Indian tax authorities. International cryptocurrency platforms that cater to Indian consumers would essentially be subject to the new Indian government regulation.
This is a huge step forward for India's strategy to regulate its own booming virtual currency business. What other nations do with international Bitcoin exchanges operating within their borders might be influenced by this as well.
With all that has happened in the Indian cryptocurrency industry recently, this is to be expected. Not long ago, millions of customer dollars were taken from the well-known Indian exchange WazirX due to a breach.
India's Regulatory Crackdown
At the same time, authorities in India's banking sector are working to create a broader framework for digital currencies. In order to determine how the government of India will handle digital assets, the RBI and SEBI are working together with other government agencies.
In an interview last month, Ajay Seth, the secretary of economic affairs, disclosed that the government is planning to submit a discussion paper describing its position on cryptocurrencies before September 2024. In order to help shape India's crypto policy, this document is circulating to gather opinions from different groups.
