- Binance has been slapped with a multimillion-dollar fine in India.
- This is the second time India has fined the exchange in less than two months.
- The latest fine stems from unpaid taxes.
The world’s largest crypto exchange by trade volume, Binance, is staring at a multimillion-dollar fine in India for failing to pay certain taxes to the Directorate General of GST Intelligence (DGGI).
The development comes barely two months after the exchange was slapped with a $2.25 million fine for violating India’s Prevention of Money Laundering Act (PMLA). While Binance didn’t officially comment on the fine, reports indicated that it allowed the exchange to re-enter the country after being blocked in January.
Trouble Knocks on Binance’s Door
According to an August 6 report by the Times of India, the Ahmedabad zonal unit for the DCGI has issued a show cause notice to Binance, demanding Rs 772 core (about $86 million) in unpaid Goods and Services Tax (GST).
Sponsored
The unpaid tax stems from Binance’s operations in the country between July 2017 and March 2024, during which it allegedly collected trading fees from Indian customers without registering under the country’s GST framework.
The regime requires foreign companies offering online information database access or retrieval (OIDAR) services to Indian residents to pay GST taxes. Regulators classify virtual asset trading services under the OIDAR category.
“Binance reportedly earned at least Rs 4,000 crore from transaction fees charged to Indian customers,” the report quoted an anonymous source. Detailed investigation revealed that the earnings of these fees were credited to the account of a Binance Group Company—Nest Services Limited—based in Seychelles.”
While the DCGI has previously pursued online businesses for tax purposes, today’s development marks the first time the regulator has issued such a notice to a crypto-native firm. This underscores India’s resolution to regulate digital assets and sets a precedent for other crypto companies to face tax scrutiny.
Stay updated on Justin Sun’s latest Ethereum acquisition:
Justin Sun Splurges $37 Million on Ethereum Despite Price Plunge: Report
Read why Bybit exited France:
Bybit Shuts Down in France: Here’s What Users Have to Do
