Crypto Giant Binance Returns to India Amid Tax Hurdle
In celebration of India’s 78th independence day, Binance just announced that it will be returning to the nation, ushering in a new era for the acceptance of cryptocurrencies in one of the fastest-growing digital economies globally. Nonetheless, under the Goods and Services Tax, Indian officials continue to demand $86 million in taxes from the exchange.
The Financial Intelligence Unit (FIU) of the Indian Ministry of Finance sent notifications to several offshore cryptocurrency exchanges in December 2023 for operating unlawfully in India, including Binance, KuCoin, Bittrex, Gate.io, and OKX. As a result, Binance‘s app was also taken down from the Indian versions of the Google Play Store and the Apple App Store.
- Because reports indicate that the company was not routinely sending statements to the Indian Income Tax Department, the fundamental issue was the exchange’s requirement to register as a “reporting entity.”
- Because of this, many users were able to avoid paying the 30% flat tax on all cryptocurrency transactions and transfers of digital assets, as well as the 1% tax deduction at source (TDS) charge, resulting in substantially lower earnings being reported.
Binance Strengthens AML Controls in India Following $2.25M FIU Fine
According to reports, Binance has made several significant moves to rebuild its profile in India. To begin with, the exchange fined the FIU around $2.25 million for breaking the nation’s anti-money laundering (AML) laws. Additionally, the exchange has given authorities assurances that it will uphold strict AML and Countering the Financing of Terrorism controls, in addition to continuing to comply with all mandated tax reporting procedures.
Furthermore, Binance has given lawmakers assurances that it will help establish a Financial Crimes Compliance Unit that leads the industry. This unit will support law enforcement in their investigations of crypto-related crimes and will strengthen capacity-building efforts to strengthen the ecosystem’s collaborative security feature.
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