India's government has dicovered widespread tax evasion among cryptocurrency exchanges, with Binance and WazirX identified as major offenders.
A total of $97 million in unpaid Goods and Services Tax (GST) liabilities has been revealed, highlighting deeper issues within the crypto industry.
The most significant case involves Binance, which reportedly avoided paying $85 million in GST through its subsidiary, M/s Nest Services Limited.
Despite earlier assurances of compliance, Binance's Indian operations show ongoing regulatory issues.
This revelation follows Binance’s announcement in August 2024 about its registration in India, which came after a $2.5 million fine for prior violations.
Minister of State for Finance Pankaj Chaudhary disclosed during a parliamentary session on 2 December that 17 Virtual Digital Asset Service Providers were investigated for the collective $97 million in unpaid taxes.
The 17 crypto exchanges identified for tax evasion. (Source: Ministry of Finance, Government of India)
WazirX owes $4.8 million in unpaid taxes, while CoinDCX and CoinSwitch Kuber owe $1.9 million and $1.7 million, respectively.
These firms have partially paid their dues, but Binance and Hyperux Technologies remain under scrutiny for non-compliance.
WazirX’s issues extend beyond taxes. A $235 million hack in July 2024 disrupted its operations, forcing withdrawal suspensions that remain in place.
In a statement on X (formerly Twitter), WazirX said,
“We will continue to pursue legal actions to reclaim illiquid and stolen assets actively, ensuring they are secured for Creditors’ benefit.”
The GST evasion cases are part of a larger regulatory clampdown on India’s cryptocurrency sector.
The Ministry of Finance reported that 47 Virtual Digital Asset Service Providers are now registered, an increase of 19 from last year.
However, heightened scrutiny on GST compliance and consumer security persists.
Binance’s troubles are not limited to India.
The exchange recently faced criticism for listing questionable Solana-based meme coins like The AI Prophecy (ACT) and Peanut the Squirrel (PNUT), with accusations of enabling pump-and-dump schemes.
Globally, Binance continues to deal with challenges, including a whistleblower lawsuit in the UK by former employee Amrita Srivastava, alleging wrongful termination after exposing bribery.
It also faces bans and fines, including a $10 billion settlement with US regulators and a ban in the Philippines for operating without a licence.
Earlier this week, Cambodia blocked access to the websites of 16 crypto exchanges, including Binance, due to their lack of licenses from the Securities and Exchange Regulator of Cambodia (SERC).
Despite Binance's partnerships in the country and efforts to support regulatory development, its website is now inaccessible, though its mobile app remains available.
While Binance faces regulatory setbacks, Indian authorities have made progress on the WazirX hack investigation.
Police in New Delhi recently arrested a suspect linked to the $235 million theft, though the primary culprit remains at large.
The hack, which WazirX suspects involved North Korean operatives, has further strained its user and regulatory relationships.
Past remarks by Binance co-founder Changpeng Zhao have resurfaced, with critics interpreting his 2022 comment, “I can disable the Indian outfit's wallets,” as foreshadowing WazirX’s ongoing troubles.
Speculation is heating up that Changpeng “CZ” Zhao, the founder of Binance, could be preparing for a dramatic return to the exchange he was forced to leave nearly two years ago.
XingChiWindtree is being delisted from Nasdaq after its share price crashed below the required $1 level. The company’s shift from biotech to holding BNB tokens failed to win investor trust, wiping out nearly all its value.
AnaisBNC, a company listed on Nasdaq, purchased 200,000 Binance Coins for $160 million and aims to raise up to $1.25 billion to increase its BNB holdings. This reflects a rising trend of firms investing in BNB as part of their corporate crypto portfolios.
Weatherly
Jason RiggsChangpeng "CZ" Zhao has broken through into the top echelons of the world’s wealthiest individuals, with his net worth reaching an estimated $75 billion following BNB’s new all-time high of $857.18.
XingChiBinance Changpeng Zhao's family office, YZi Labs, is making a significant move by supporting an investment company to go public in the U.S.
XingChiSilk Road founder Ross Ulbricht has resurfaced as a polarising crypto figure, raising $1.8 million in Bitcoin by auctioning prison memorabilia. Days later, he received a surprise 300 BTC donation worth $31 million—reigniting debate over whether this support reflects alignment with his ideals or raises ethical concerns in today’s crypto culture.
CatherineThe SEC dropped its lawsuit against Binance after nearly three years of legal action over alleged securities violations. The case was closed as the new SEC leadership began easing its stance on crypto regulation.
WeatherlyBhutan has launched the world’s first national crypto tourism payment system, letting visitors pay for everything from flights to local goods using digital currencies like Bitcoin and BNB. The system, built with Binance Pay and DK Bank, helps local businesses—especially in remote areas—accept crypto payments easily.
AnaisUSDC is now the default currency on Binance Pay, making it easier for users to send and receive money instantly with zero gas fees. This update simplifies payments for both individuals and businesses, offering fast, low-cost transactions using a stable digital dollar.delays or extra costs.
AnaisIn its latest YouTube town hall, WazirX co-founder Nischal Shetty unveiled a mutitiered plan focused on helping creditors regain a portion of their funds.
XingChiWazirX faces ongoing challenges after a recent hack, as affected users plan to sue for over $600,000 in cryptocurrency assets. They seek both damages and full restoration of their crypto balances, with more victims expected to join the lawsuit as it progresses.
CatherineWazirX seems to be caught in their own web of lies. It seems that not only has the company lied about the hack, they have also blatantly lied and fake the numbers that they have submitted to the authorities.
XingChiBinance has rejected claims of responsibility for WazirX’s recent $235 million hack, calling on WazirX to address the loss of user funds while clarifying that it never completed its acquisition of the platform.
SanyaWazirX faces backlash over hack response poll, damaging reputation and raising industry concerns.
Xu LinSocial media reacts with zero-notice rug-pull accusations; CEO Nischal Shetty replies NFTs are always under self-custody.
cryptopotatoThe notorious North Korean hacker collective known as Lazarus has had a busy weekend moving millions of dollars in Ethereum.
cryptopotatoED revealed that WazirX’s utility token ‘WRX’ and an Ethereum token Tether ‘USDT’ has been frozen.
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