Binance Reaffirms Commitment to Indian Laws Following Significant GST Notice

Earlier this year, the exchange faced a temporary suspension in India due to its lack of registration with the Financial Intelligence Unit (FIU).

Written by Radhika Parashar, Edited by Siddharth Suvarna | Updated: 7 August 2024 19:03 IST

Binance Reaffirms Commitment to Indian Laws Following Significant GST Notice

Photo Credit: Bianance

Binance does not have a headquarter for now and the company is scouting for locations

Highlights

Binance sees India as an important market
India has repeatedly directed Binance to align its business with laws
Binance allows users to buy, sell, and trade in cryptocurrencies

Binance is currently staring at a GST payment of Rs. 772 crore in India. In an official statement shared with Gadgets360, the crypto exchange once again repeated its intentions of striving to comply with Indian laws after this fresh run-in with the country's Directorate General of GST Intelligence (DGGI). Earlier this year, the exchange was temporarily suspended in India for not being a registered entity with the Financial Intelligence Unit (FIU).

“We are aware of certain media reports circulating regarding tax notices being issued by Indian GST authorities to global crypto platforms. We would like to clarify that Binance is, and has always been, committed to adhering to relevant domestic legislations applicable to us,” a spokesperson of Binance told Gadgets360.

The DGGI's Ahmedabad zonal unit has issued this GST notice to Binance this week. The exchange faces the hefty GST payment because it reportedly charged its Indian users a platform fee, which collectively amounted to Rs. 4,000 crore, and all funds were transferred to an offshore account linked to a group company.

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“We are fully cooperating with the Indian authorities to address any concerns. Binance remains dedicated to maintaining the highest standards of compliance and transparency in the industry,” the company spokesperson added.

Despite previous assurances of compliance with Indian laws, Binance was recently fined $2.25 million for breaching India's anti money laundering regulations. This fine was imposed in June, a month after Binance claimed to have registered with the FIU in May. At that time, the company also promised to cooperate with Indian authorities.

For now, the company has not provided any additional insight into its situation with the DGGI in India.

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As per DGGI officials familiar with the matter, the Bengaluru Commissionerate will be acting as the adjudicating authority because that office is designated to deal with cases linked to foreign companies with no physical offices in India.

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Further reading: Cryptocurrency, Binance, Crypto Exchange, GST, Compliance

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More