According to the Indian authorities, crypto exchange WazirX, owned by Binance, has violated tax laws in the country.
A study of the platform’s business activity revealed a Goods and Services Tax (GST) evasion in the amount of over $6 million, including interest and fines.
The authorities have also turned their attention to other exchanges. According to The Economic Times, CoinDCX, Unocoin, Coinswitch Kuber and BuyUCoin are currently under investigation. Per the press release:
“The above case is part of a campaign against tax evasion. The CGST Department will cover all crypto exchanges that fall into the Mumbai zone, and will also intensify this work in the coming days.”
According to CoinDesk, WazirX cited the lack of clarity in the regulation and stated it is “paying tens of crores in GST every month in good faith.” The company said:
“There was ambiguity in the interpretation of one of the components, which led to a different calculation of the value added tax paid. We have voluntarily paid an additional GST. There was not and there is no intention to evade paying taxes.”
We should remember that Binance purchased the Indian crypto exchange in November 2019.
In the summer of 2021, the Indian Ministry of Finance’s Enforcement Office announced an investigation into WazirX.