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Binance thrives throughout market downturn with file $2 billion inflows regardless of India tax probe



Binance CEO Richard Teng revealed that the exchange saw record inflows and one of its highest trading volumes this year as investors panicked in the jittery market on Aug.5

Teng wrote:

“Amid the macroeconomic climate and yesterday’s market downturn, Binance recorded a net inflow of $1.2 billion in the past 24 hours, according to DefiLlama’s CEX Transparency metrics.”

According to DeFillama dataBinance’s inflows had climbed to more than $2 billion as of press time, which is 5x higher than its closest rival, Bybit.

Meanwhile, these numbers are not surprising, considering Binance is the largest crypto exchange by trading volume and controls around 50% of the market, according to Kaiko data. Nevertheless, Teng stated that the substantial inflow to the exchange reflected strong investor confidence in the platform.

On Aug. 5, the global stock and crypto markets faced significant declines as a surge in the Japanese yen led to a rapid unwinding of carry trades. This shift accelerated a sell-off, resulting in substantial losses for investors holding significant digital assets like Bitcoin and Ethereum.

Tax challenge in India

Despite its strong market performance, Binance is navigating significant tax issues in India.

Reports from The Times of India showed that the Directorate General of Goods and Service Tax Intelligence (DGGI) demanded 722 crore Indian rupees ($86 million) from Binance for unpaid Goods and Services Tax (GST).

According to the report, Binance generated 4,000 crore Indian rupees (over $400 million) from Indian clients. These funds were credited to Nest Services Limited, a Binance Group entity based in Seychelles.

Indian tax authorities sent notices to Binance offices in Seychelles, the Cayman Islands, and Switzerland. Initially, these were ignored, but Binance has now appointed a local attorney to address the tax issues.

Meanwhile, this case marks the first time the Indian tax authorities have targeted a crypto firm with such formal notices.

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