India’s Finance Minister, Pankaj Chaudhary, revealed that 17 cryptocurrency companies, including Binance, WazirX, and CoinDCX, owe the government $97 million in unpaid taxes.

The bulk of the amount, $85 million, is attributed to Binance, while the remaining $12 million involves platforms such as CoinSwitch, UnoCoin, and Flitpay.

Chaudhary stated that the liability relates to unpaid Goods and Services Tax (GST). Authorities have already recovered $14 million in taxes and penalties, but $97 million remains outstanding.

Investigations and Allegations

The minister disclosed that investigations have been launched against certain exchanges, including WazirX, CoinDCX, and CoinSwitch Kuber, for tax evasion. However, specific details about these cases remain under wraps.

Binance first faced accusations in August 2024, when regulators alleged non-compliance with GST regulations related to trading fees. In December 2023, Indian authorities blocked access to Binance’s online resources due to licensing issues, forcing the platform to temporarily suspend operations in the country.

In August 2024, Binance secured an official license to operate in India and reportedly agreed to clear its tax dues. However, Chaudhary claims that the promised payment has not yet been made.

“We continue to engage closely with regulatory authorities and attend necessary hearings to address any concerns. Binance remains committed to full compliance with all tax obligations,” the company stated.

Context

Indian authorities have been actively scrutinizing cryptocurrency companies for tax compliance. In December 2023, Binance assisted regulators in tracing $47.6 million in the Fiewin case.

Earlier in August 2024, the Indian government tightened cryptocurrency regulations, leading to the closure of some platforms and significant adjustments in business strategies.