India Uncovers $97 Million in Crypto Tax Evasion
The Indian government has detected $97 million in dues of goods and services taxes by various cryptocurrency exchanges, which include Binance and WazirX. This has been confirmed by the Minister of State for Finance, Pankaj Chaudhary, during an inquiry from Parliament. Binance, the world’s biggest cryptocurrency exchange, owes about $85 million in dues, while WazirX, an Indian exchange, owes $4.8 million.
Authorities have launched probes into 17 crypto firms, including other big players such as CoinDCX and CoinSwitch Kuber. This is part of India’s increasing drive to enforce tax compliance in the burgeoning digital asset market.
$14 Million Recovered, WazirX Settles Dues
The government has already managed to recover $14 million in taxes, penalties, and interest from crypto exchanges. WazirX settled its dues with a payment of $5.8 million, which covers a 20% penalty over its original GST liability. CoinDCX and CoinSwitch Kuber were facing smaller dues and also complied with the requirements.
The recovery essentially shows the proactive approach of the government whereby enforcement agencies have been conducting deeper investigations to ensure that cryptocurrency companies comply with tax laws.
Binance Yet to Pay $85 Million in Taxes
While many firms have already settled their dues, Binance has yet to pay its $85 million tax liability. Despite ongoing probes, the exchange has not made any recovery payments. A Binance spokesperson said, “We are cooperating with regulatory authorities and addressing all inquiries,” but the firm remains under scrutiny.
Other companies, like Hyperux Technologies, have also been flagged for non-compliance, indicating further investigations may be underway.
Crypto Regulations Tighten
Along with tax crackdowns, India has registered 47 virtual digital asset providers under anti-money laundering laws. This is in line with global efforts to tighten cryptocurrency regulations and crack down on illicit activities in the sector.
The crackdown on tax evasion, as the authorities ramp up their oversight, underlines growing pains as cryptocurrencies are integrated into regulated financial ecosystems. With the enforcement of compliance going full bore, the future of India’s crypto firms will be one of regulatory scrutiny.
