Binance faces paying $86 million tax demand in India

[hugeblack]

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.

[TokenTactician24]

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.

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? 😄

[ABCbits]

$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.

[Stompix]

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.

[Vision pro]

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.

[QuickEx]

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.

[MUGNIA]

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

[Hamza2424]

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.

[Legion]

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.

[Dr.Bitcoin_Strange]

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.