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Learning & News => News related to Crypto => Topic started by: TomPluz on August 21, 2024, 09:45:03 AM

Title: Binance faces paying $86 million tax demand in India
Post by: TomPluz on August 21, 2024, 09:45:03 AM
(https://cimg.co/wp-content/uploads/2024/08/20180110/1724176870-1724175536813_processed.jpg)

Quote

Binance faces an $86 million tax demand from Indian authorities under the Goods and Services Tax (GST) framework. This comes as the crypto exchange seeks to reestablish its presence in the country, which has been marked by a challenging regulatory journey.

The return of Binance to India comes after Indian anti-money laundering (AML) agencies gave Binance the green light to resume operations.

On August 15, 2024, coinciding with India’s 78th Independence Day, Binance announced its reentry into the Indian market. The company sees this as a fresh start for cryptocurrency adoption in India, a rapidly growing digital economy. Yet, this fresh start is complicated by past issues.

The origins of this tax dispute can be traced back to December 2023, when India’s Financial Intelligence Unit (FIU) issued notices to several offshore crypto exchanges, including Binance, KuCoin, Bittrex, Gate.io and OKX, for operating illegally in the country.



Get more of this Binance story here.  (https://cryptonews.com/news/indian-authorities-demand-86-million-tax-from-binance.htm)

The Indian government through its regulatory agencies is really maximizing all the possible means to tax Binance and since Binance is really interested to get back to the country's crypto market then it must start to negotiate the amount the government might be demanding for it to pay. Let's just say that this can be the cost of doing business with a big market such as India. Let's not hope that this will not be affecting its operation and the fees Binance would be imposing its users...because too much can lead to stagnation which can be a lose-lose to all parties involved. what is opinion with this development.

Do you think this is already excessive on the part of the Indian government or you feel this is just fair and right since Binance violate the law and is so rich, anyway?


Title: Re: Binance faces paying $86 million tax demand in India
Post by: ABCbits on August 21, 2024, 11:47:47 AM
So basically Indian government is asking for past TDS and crypto tax. I wonder how exactly will Binance ask Indian user pay their past tax, especially for inactive user or user without any coin/fiat on their account.
Title: Re: Binance faces paying $86 million tax demand in India
Post by: MrSpasybo on August 21, 2024, 05:28:25 PM
Do you think this is already excessive on the part of the Indian government or you feel this is just fair and right since Binance violate the law and is so rich, anyway?
I think that before returning to India, Binance was already aware of this requirement and they were prepared to pay $86M before they could resume serving the trading needs of Indian crypto investors. $86M is not a huge amount considering Binance's financial capacity, let's not forget that Binance once paid $4B to the US DOJ.

I hope that this is the final hurdle for Binance to officially return, comply with the law to operate legally in India, attract the participation of potential investors and help new funds from this market flow into crypto more easily, providing the momentum for us to have a bullrun in the coming months.
Title: Re: Binance faces paying $86 million tax demand in India
Post by: NotATether on August 22, 2024, 01:49:44 PM
I'm not really sure where this tax amount is coming from. Was Binance not paying their obligations in India properly?

Then again, I suspect that they might have an Indian subsidiary if they are going to be held responsible for paying tax. But given that this is affecting several other exchanges, my hunch is that there was no such company there.
Title: Re: Binance faces paying $86 million tax demand in India
Post by: yhiaali3 on August 23, 2024, 05:26:27 AM
I read a few days ago that the Indian government is imposing a fine of $125 million on Binance, I don't know if it has anything to do with this news or something else, anyway, $125 million fine and $86 million tax is not a burden on Binance at all.

I expect Binance will be very happy to pay these small amounts to stay in the large Indian market where there is a very large user base due to the huge population.

This is a right decision by the Indian government to collect taxes from Indian exchanges and users instead of the previous ban and losing all this money.
Title: Re: Binance faces paying $86 million tax demand in India
Post by: Baofeng on August 23, 2024, 10:21:53 AM
I thought that everything is fine with the Indian government and that Binance will be back at that country without any hiccup. Because we have the same issue with Binance as well (Philippines) and they cease to exists because of the so called violation but they promise that they will be back.

But I guess $86 million tax is small for them, as compare to the money that they are going to make in the Indian market. So I'm expecting that they are going to pay that fine and be back, easy peasy.
Title: Re: Binance faces paying $86 million tax demand in India
Post by: target on August 23, 2024, 11:00:13 AM

$125 M + 86M Thats a lot for an exchange that can actualky operate even without license from a country. To hell should Binance care if India bans them as long a peoplenprefer them, its fine. Binance could allow VPN users.

Thats what they will negotiate to make the negotiation amount to drag to just $10M. Its always Binance that is being banned, we don't hear OKx or bybit or coinbase. I'm sure they are not registered to every country.
Title: Re: Binance faces paying $86 million tax demand in India
Post by: Faisal2202 on August 23, 2024, 11:38:04 AM
Do you think this is already excessive on the part of the Indian government or you feel this is just fair and right since Binance violate the law and is so rich, anyway?
One thing I have seen till now even though I'm not an Indian and is they don't just give up on taxes, if they asked Binance to pay $86 Million tax then they have to pay it because it's not a fine its a tax and as far as I have seen tax don't just get reduced but they get increased excessively. This means Binance has to make a decision soon if they want to provide their service to 5 Million users which shifted to foreign exchanges when Binance left India back in 2023.

Binance not only violates the laws but I don't think this tax has something to do with the violation because its the tax, not the fine as I have seen SEC request fines from several platforms, let's not go far and take the most hyped case into consideration, XRP and SEC case in which they asked for $2 billion fine and now the fine has been reduced to some millions.

I think using the term tax is better and more effective than using the term fine if an authority wants to really charge money and get it.
Title: Re: Binance faces paying $86 million tax demand in India
Post by: Stompix on August 23, 2024, 12:15:04 PM
I'm not really sure where this tax amount is coming from. Was Binance not paying their obligations in India properly?

Hihi, do you think Binance was paying their obligations correctly anywhere?  ;D
These are the guys that fled jurisdiction over jurisdiction, lied about everything, denied facts they claimed one week ago and taxes were probably the last on their list of doing, probably after donating a kidney or liver.

But I wonder who is going to use them, they will probably report everything to the state and also might take those taxes directly from your account, the 1% on trade might be manageable but the 30% one...
Title: Re: Binance faces paying $86 million tax demand in India
Post by: Zed0X on August 23, 2024, 02:34:43 PM
$125 M + 86M Thats a lot for an exchange that can actualky operate even without license from a country. To hell should Binance care if India bans them as long a peoplenprefer them, its fine. Binance could allow VPN users.
Apparently, Binance still care and want to enter India's market. Didn't you notice in the past years that they were moving towards cooperation and compliance with authorities? It started when they changed their no-KYC policy to forced KYC.

I guess they realized that there is no sense to keep fighting Government restrictions. Crypto is now mainstream and it's only natural for a business like Binance to follow where the money is.
Title: Re: Binance faces paying $86 million tax demand in India
Post by: _act_ on August 23, 2024, 06:50:58 PM
But I guess $86 million tax is small for them, as compare to the money that they are going to make in the Indian market. So I'm expecting that they are going to pay that fine and be back, easy peasy.
What I just think is that Binance will know how they will charge Indians from transactions fees and some other ways if the exchange accept the tax. So it would be from India government to Binance and from Binance to their citizens. So Binance will still make money while Indians will be the one to pay more.

Thats what they will negotiate to make the negotiation amount to drag to just $10M. Its always Binance that is being banned, we don't hear OKx or bybit or coinbase. I'm sure they are not registered to every country.
Because Binance is the leading exchange. But know that 9 exchanges or more were banned from India that time and not only Binance. But Binance decided to approach the regulators and get licensed in India.
Title: Re: Binance faces paying $86 million tax demand in India
Post by: Aanuoluwatofunmi on August 23, 2024, 10:53:46 PM
(https://cimg.co/wp-content/uploads/2024/08/20180110/1724176870-1724175536813_processed.jpg)

Quote

Binance faces an $86 million tax demand from Indian authorities under the Goods and Services Tax (GST) framework. This comes as the crypto exchange seeks to reestablish its presence in the country, which has been marked by a challenging regulatory journey.

The return of Binance to India comes after Indian anti-money laundering (AML) agencies gave Binance the green light to resume operations.

On August 15, 2024, coinciding with India’s 78th Independence Day, Binance announced its reentry into the Indian market. The company sees this as a fresh start for cryptocurrency adoption in India, a rapidly growing digital economy. Yet, this fresh start is complicated by past issues.

The origins of this tax dispute can be traced back to December 2023, when India’s Financial Intelligence Unit (FIU) issued notices to several offshore crypto exchanges, including Binance, KuCoin, Bittrex, Gate.io and OKX, for operating illegally in the country.



Get more of this Binance story here.  (https://cryptonews.com/news/indian-authorities-demand-86-million-tax-from-binance.htm)

The Indian government through its regulatory agencies is really maximizing all the possible means to tax Binance and since Binance is really interested to get back to the country's crypto market then it must start to negotiate the amount the government might be demanding for it to pay. Let's just say that this can be the cost of doing business with a big market such as India. Let's not hope that this will not be affecting its operation and the fees Binance would be imposing its users...because too much can lead to stagnation which can be a lose-lose to all parties involved. what is opinion with this development.

Do you think this is already excessive on the part of the Indian government or you feel this is just fair and right since Binance violate the law and is so rich, anyway?

India is one of the countries I know that Binance exchange is going to have a difficult time with in other for them to cope staying because they don't play with paying tax over there, not to even talk about when cryptocurrency is what is on consideration for tax payment, they can't spare any on that, if they can't allow their own citizens also to have all it takes in paying task for everything they do regarding crypto, then they may have to see it also an an opportunity for them to make more revenue generation through task on exchange like Binance.
Title: Re: Binance faces paying $86 million tax demand in India
Post by: Z-tight on August 23, 2024, 11:19:08 PM
I thought everything was going on fine between the Indian authorities and Binance, they just got their license a short time ago, and paid the fine of ~$2m for operating 'illegally' in the country.

So right now, i believe the Indian authorities are not stopping at that, they have seen an opportunity to make money from these crypto firms and they will. Since Binance was operating without a license, then the amount accumulated in taxes is understandable. Binance may have to pay or settle with the authorities, so they can continue operating smoothly.
Title: Re: Binance faces paying $86 million tax demand in India
Post by: Captain Corporate on August 24, 2024, 12:34:35 AM
This should be basically nothing for them, I would guess that they have some lawyers on retainer so they will probably push back a little, but if you are going against the government itself, there is no way that you can avoid it. There is one way, which is paying a bribe to pay less, so you pay like 20-30 million in bribes, and do not pay a dime on the tax demand, but that is of course something I am not sure if India does, many nations do it, many corrupt officials all over the world does it, but I have never been to India ever so I can't say if they have those people there too. In the end, if they just straight up paid this, it wouldn't be a few days profit for them, its nothing to them anyway.
Title: Re: Binance faces paying $86 million tax demand in India
Post by: Stompix on August 25, 2024, 03:17:14 AM
India is one of the countries I know that Binance exchange is going to have a difficult time with in other for them to cope staying because they don't play with paying tax over there, not to even talk about when cryptocurrency is what is on consideration for tax payment, they can't spare any on that, if they can't allow their own citizens also to have all it takes in paying task for everything they do regarding crypto, then they may have to see it also an an opportunity for them to make more revenue generation through task on exchange like Binance.

Are we talking about the same Inida where only 2.2% of the population pays tax and has one of the highest black market economies related to GDP in the world? If there is one country on this planet hat had more tax evasion than Greece then that's definitely India.
They might have the laws, they might want to get money through tax but the end result of incompetence is showing in numbers.

Unless they will force Binance to tax themselves the accounts nobody is going to pay one penny in tax.

Title: Re: Binance faces paying $86 million tax demand in India
Post by: hugeblack on August 26, 2024, 08:23:37 AM
It depends on what the government wants. High taxes and fees are a soft ban when the government cannot enact a binding law or regulation and it also pushes more people to not comply with tax procedures. However, taxes and fees less than 20% on an annual basis will be beneficial to all parties.
Title: Re: Binance faces paying $86 million tax demand in India
Post by: TokenTactician24 on August 26, 2024, 09:49:52 AM
(https://cimg.co/wp-content/uploads/2024/08/20180110/1724176870-1724175536813_processed.jpg)

Quote

Binance faces an $86 million tax demand from Indian authorities under the Goods and Services Tax (GST) framework. This comes as the crypto exchange seeks to reestablish its presence in the country, which has been marked by a challenging regulatory journey.

The return of Binance to India comes after Indian anti-money laundering (AML) agencies gave Binance the green light to resume operations.

On August 15, 2024, coinciding with India’s 78th Independence Day, Binance announced its reentry into the Indian market. The company sees this as a fresh start for cryptocurrency adoption in India, a rapidly growing digital economy. Yet, this fresh start is complicated by past issues.

The origins of this tax dispute can be traced back to December 2023, when India’s Financial Intelligence Unit (FIU) issued notices to several offshore crypto exchanges, including Binance, KuCoin, Bittrex, Gate.io and OKX, for operating illegally in the country.



Get more of this Binance story here.  (https://cryptonews.com/news/indian-authorities-demand-86-million-tax-from-binance.htm)

The Indian government through its regulatory agencies is really maximizing all the possible means to tax Binance and since Binance is really interested to get back to the country's crypto market then it must start to negotiate the amount the government might be demanding for it to pay. Let's just say that this can be the cost of doing business with a big market such as India. Let's not hope that this will not be affecting its operation and the fees Binance would be imposing its users...because too much can lead to stagnation which can be a lose-lose to all parties involved. what is opinion with this development.

Do you think this is already excessive on the part of the Indian government or you feel this is just fair and right since Binance violate the law and is so rich, anyway?
The post highlights Binance's return to the Indian market, marked by an $86 million tax demand from Indian authorities. This development reflects the Indian government's strong regulatory stance on crypto activities, emphasizing compliance, especially with past issues related to anti-money laundering. Binance's reentry into India is significant as it aligns with the country’s growing digital economy, but the heavy tax demand raises questions about its long-term impact on operations and user fees.

In short, while the tax might seem hefty, it’s a reminder of the cost of doing business in a market like India. It’s amusing how this reentry coincides with India’s Independence Day—talk about a “freedom” tax! How do you think this will play out for Binance and its users in India? 😄
Title: Re: Binance faces paying $86 million tax demand in India
Post by: ABCbits on August 26, 2024, 11:40:12 AM
$125 M + 86M Thats a lot for an exchange that can actualky operate even without license from a country. To hell should Binance care if India bans them as long a peoplenprefer them, its fine. Binance could allow VPN users.

That could bring another legal trouble to Binance, when they already got fined by government due to optional KYC. But Indian people could try using DEX or finding P2P offer from local community.
Title: Re: Binance faces paying $86 million tax demand in India
Post by: Stompix on August 27, 2024, 08:45:36 AM
High taxes and fees are a soft ban when the government cannot enact a binding law or regulation and it also pushes more people to not comply with tax procedures.

If things are done by the book by all involved parties, this means government, exchange third party aka banks then users would literally have no choice but to pay up, Binance and the government have the numbers, and the government does the taxes, the banks obey with taking the money from their account and blacklisting them if they don't pay the annual tax.

But I have a feeling even with 0.1% tax nobody in this chain will do his duty, let alone the people themselves.
Title: Re: Binance faces paying $86 million tax demand in India
Post by: Vision pro on August 27, 2024, 01:51:01 PM
High taxes and fees are a soft ban when the government cannot enact a binding law or regulation and it also pushes more people to not comply with tax procedures.

If things are done by the book by all involved parties, this means government, exchange third party aka banks then users would literally have no choice but to pay up, Binance and the government have the numbers, and the government does the taxes, the banks obey with taking the money from their account and blacklisting them if they don't pay the annual tax.

But I have a feeling even with 0.1% tax nobody in this chain will do his duty, let alone the people themselves.
When governments, banks or other central authorities regulate financial transactions and taxes, users are forced to comply with those rules.  They are forced to pay taxes and impose controls on transactions. Cryptocurrencies, however, aim to break free from such centralized controls and give users the freedom to conduct their own financial transactions.  But what you point out, is that even with low tax rates, many people may choose not to be responsible for central control.
Title: Re: Binance faces paying $86 million tax demand in India
Post by: QuickEx on August 27, 2024, 06:42:57 PM
It’s a complex situation. While it’s reasonable for the Indian government to regulate and tax cryptocurrency exchanges, excessive demands could hinder Binance’s operations and ultimately lead to higher fees for users. Finding a balanced approach is crucial—one that allows Binance to operate effectively while ensuring compliance with local laws.
Title: Re: Binance faces paying $86 million tax demand in India
Post by: MUGNIA on August 31, 2024, 05:10:21 PM
I think it's not excessive because every country has rules and must have a stance in all aspects, especially for tax crypto issues, because as we know the government does not fully support crypto so they complicate operations related to crypto, $ 86 million for a binance class is actually not too big if from crypto trading from India you can get a lot of profit and always be active
Title: Re: Binance faces paying $86 million tax demand in India
Post by: Hamza2424 on August 31, 2024, 07:58:51 PM
Do you think this is already excessive on the part of the Indian government or you feel this is just fair and right since Binance violate the law and is so rich, anyway?
Hmm, That's a significant move by India against Binance, but Binance deserves to be treated like this. Although I am a fan of Binance, along with other exchanges, the recent actions by Binance are quite upsetting to me. They not only banned Palestinian Binance accounts but also froze their funds.

This was a major way for Palestinians to receive donations and for the outside world to help them, and Binance has taken that away from them. I thought Binance sympathized with Palestine, but this action is totally unacceptable. Anyway, it's their exchange, and if we don't like it, we can choose to leave. A tax of $86 million is not that much for the exchange now, especially considering they have seized a lot of Palestinian funds.
Title: Re: Binance faces paying $86 million tax demand in India
Post by: Legion on September 11, 2024, 06:08:45 AM
I think it's not excessive because every country has rules and must have a stance in all aspects, especially for tax crypto issues, because as we know the government does not fully support crypto so they complicate operations related to crypto, $ 86 million for a binance class is actually not too big if from crypto trading from India you can get a lot of profit and always be active
While it is true that it is becoming apparent that every country has to establish the rules, especially it comes to the taxation of cryptos, the market needs to remain as organized and transparent as possible. Another issue is that government policies are not always friendly towards crypto, so it is expected that there will be strict regulation. The $86 million investment in Binance is relatively small when compared to possible revenues from the stirring and growing crypto trading, especially in a vast and budding market as India.

Also, strict regulation can be difficult, but it can also serve more as a corrective mechanism and stop further issues from developing. Moreover, sensible regulation may also positively contribute to increasing the stability and reliability of the environment for all market participants rather than causing added burden.
Title: Re: Binance faces paying $86 million tax demand in India
Post by: Dr.Bitcoin_Strange on September 12, 2024, 12:37:56 PM
They want to reopen their business in India, so they should also make sure to pay every Tax that is due for them. Although the $86 million tax is huge but binance can actually evaluate it and see if after they start their business in the country, whether they can be able to hit a good profit that is worth paying such a heavy task, if they are not profitable after the the tax payment, then they can apply to the government for tax reduction or they can quit.