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Binance asked to pay $86m in Indian Goods and Services Tax

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1 month ago

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Binance has received a show-cause letter from the Directorate General of GST Intelligence of Ahmedabad to pay inr 722 crores, approximately $86 million USD, as goods and services tax.

According to a Times of India report, the DGGI, an agency operating under India’s Ministry of Finance to combat tax evasion, alleges that Binance is liable to pay GST as it had collected fees from Indian nationals using its platform.

Binance also reportedly failed to register under the GST framework, resulting in the recent scrutiny. 

The GST is a comprehensive indirect tax levied on the manufacture, sale, and consumption of goods and services at the national level. Foreign entities operating in India are required to pay this tax if they offer their services to Indians and register under the GST framework.

Binance allegedly earned at least 4,000 crores, approximately $476 million, from transaction fees, a source told Times of India. 

Investigations conducted by the DGGI revealed that the fees were deposited in an account controlled by Nest Services Limited, a Seychelles-based Binance subsidiary.

On top of this, the DGGI has also reached out to other companies in the Binance group, including those operating in the Cayman Islands and Switzerland.

In response, Binance has reportedly appointed a representative to engage with the agency to resolve the issue.

For the DGGI, this was the first instance where it issued a show cause of this nature to a cryptocurrency firm. However, the agency has previously cracked down on domestic cryptocurrency exchanges to thwart tax evasion. 

During the 2022 investigation, the DGGI found that several crypto exchanges were responsible for 70 crores, approximately $8.34 million,  in tax evasion. 

Meanwhile, Binance is looking at a second hefty payment to be made to Indian regulators. In June, the nation’s Financial Intelligence Unit slapped the exchange with a $2.25 million fine for failing to register its operations.

Despite the fine, sources claimed that the exchange was considering returning to India as a compliant platform and was willing to pay the fine.

The exchange was banned in January but largely dominated the Indian market prior to that. When India implemented a 30% capital gains tax and a 1% TDS on crypto profits and trades, investors rushed to the platform to bypass the added costs.

Binance had initially made its foray into India by acquiring local crypto exchange WazirX. However, it later distanced itself, claiming the acquisition was not completed, right after India’s ED initiated a money laundering investigation against WazirX.



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Swan Bitcoin and Equity Trust join forces to expand Bitcoin IRAs

Published

3 weeks ago

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August 29, 2024

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Swan Bitcoin is partnering with Equity Trust Company to offer enhanced Bitcoin Individual Retirement Accounts.

Clients can now seamlessly manage Bitcoin (BTC) within their retirement portfolios, with new account types such as Solo 401(k)s, Roth Solo 401(k)s, SEP IRAs, and Health Savings Accounts available through the Swan platform, according to an Aug. 29 press release. 

This partnership expands Bitcoin savings to more tax-advantaged accounts. The collaboration also introduces a unique feature: a premium IRA option that provides clients with a specific watch address, allowing direct on-chain visibility and verification of their Bitcoin holdings.

This marks a significant step in making Bitcoin more accessible to a wider range of investors, especially those seeking retirement options.

Bitcoin IRA security

Bitcoin IRAs have gained traction as a way to diversify retirement portfolios. However, security remains a critical concern. Providers like Swan Bitcoin emphasize the importance of secure storage, using cold storage methods and advanced encryption to protect assets. 

Despite these measures, the inherent volatility of Bitcoin still poses a risk, making it crucial for investors to weigh potential rewards against the risks. Additionally, Bitcoin IRAs typically carry higher fees compared to traditional IRAs.

Cory Klippsten, Founder and CEO of Swan Bitcoin, stated that the collaboration will provide a safer way for clients to include Bitcoin in their retirement planning. Both companies emphasized the importance of security and client service in this offering.



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Major Tax Reform Bill Submitted to US Senate

Published

2 months ago

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July 26, 2024

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Another major crypto tax bill was introduced in the United States Senate as regulation in the industry is taking center stage this election cycle.

Coin Center And US Senators on Crypto Tax Bill

Jerry Brito, the Executive Director of Coin Center noted that the Virtual Currency Tax Fairness Act was introduced with bipartisan sponsors. Notably, this is the second time in the Senate today.

This bill aims to create a “sensible de minimis exemption” from capital gains tax for low-value cryptocurrency transactions in day-to-day use. This is quite similar to the exemption that exists for foreign currency.

The Coin Center executive highlighted his firm’s advocacy for such solutions over the years. Therefore, they engaged a few Senators to have the bill delivered in the Senate. The sponsors includes Sen. Ted Budd, Sen. Kyrsten Sinema, Sen. Cynthia Lummis and Kirsten Gillibrand.

The collective effort made the bill the first bi-partisan and bi-cameral cryptocurrency legislative effort bordering on taxation.

US Senators Fight For Robust Crypto Regulations

Noteworthy, these senators are some of the core supporters of clear crypto regulations. To a large extent, Sen. Lummis has pushed the United States to adopt cryptocurrencies wholeheartedly.

She once criticized the Department of Justice (DOJ) for its interpretation of regulations surrounding non-custodial software wallets. This followed DOJ’s filing of criminal charges against developers tied to the Bitcoin mixer Samourai Wallet and the Tornado Cash.

Immediately after the Securities and Exchange Commission (SEC) approved spot Ethereum ETF, Sen. Lummis pressed Congress to establish a clear crypto regulatory framework for the industry. Her call for Congressional action came as a result of concerns around market volatility and consumer protection.

The Lummis and Gillibrand duo have spearheaded a couple of other crypto bills in the past. Both lawmakers introduced a significant legislative proposal aimed at regulating stablecoins.

Generally, their effort reflects the headway recorded for clear  regulations in the crypto ecosystem.

Read More: Chevron Case Winning Lawyer Paul Clement Joins Coinbase Board

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter, Linkedin

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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