Indian authorities are now reportedly set to investigate 400 Binance traders on the grounds of crypto tax evasion. This development comes following Binance’s reentry into the Asian market, during which it registered itself as a “reporting entity”.
These traders are suspected of evading taxes on their crypto profits between 2022-23 and 2024-25, while also refusing to reveal their investments in various exchange wallets outside the country. In India, there is a 1% tax on every crypto sale, followed by a total tax ranging from 33% to 38% on every profit, along with 4% fees that could push the effective tax rate to around 42.7%.
Wealthy traders in India had long relied on foreign exchanges such as Binance to evade the country’s strict crypto tax regime, a strategy that has now backfired amid recent enforcement actions. According to The Economic Times, many of these transactions were facilitated through the transfer of USDT, a stablecoin, to Binance accounts, or via traditional banking channels under the Reserve Bank of India’s Liberalized Remittance Scheme.
At the time of writing, the total crypto market cap is valued at $3.68 trillion, representing a slight 1.67% recovery in the last day. Meanwhile, total daily trading volume is up by 32.40% and valued at $400.72 billion.
