Binance CEO Richard Teng recently shared that the exchange experienced record inflows and one of its highest trading volumes for the year. In a statement, Teng mentioned that amidst the macroeconomic climate and a market downturn, Binance recorded a net inflow of $1.2 billion in just 24 hours. This data was sourced from DefiLlama’s CEX Transparency metrics. Moreover, according to DeFillama data, Binance’s inflows had surged to over $2 billion at the time of press release. This amount was significantly higher than its closest competitor Bybit.
It is not surprising that Binance, being the largest crypto exchange by trading volume and commanding about 50% of the market, attracted such substantial inflows. Despite the market challenges, Teng emphasized that the influx of funds into the exchange indicated strong investor confidence in the platform. The fluctuations in the global stock and crypto markets on August 5th, primarily triggered by a surge in the Japanese yen causing a sell-off, resulted in significant losses for investors holding digital assets like Bitcoin and Ethereum.
While Binance has been performing well in the market, the exchange is currently facing significant tax-related challenges in India. Reports from The Times of India revealed that the Directorate General of Goods and Service Tax Intelligence (DGGI) demanded 722 crore Indian rupees (equivalent to $86 million) from Binance for unpaid Goods and Services Tax (GST). It was reported that Binance had generated over 4,000 crore Indian rupees (more than $400 million) from Indian customers, with the funds being credited to Nest Services Limited, a Binance Group entity based in Seychelles.
In response to the tax demand, Indian tax authorities issued notices to Binance offices located in Seychelles, the Cayman Islands, and Switzerland. Initially, these notices were overlooked by Binance; however, the exchange has now taken steps by appointing a local attorney to address the tax issues. This particular case stands out as it marks the first time that Indian tax authorities have formally targeted a crypto firm with such demands and notices.
Despite the challenges faced by Binance, such as tax issues in India, the exchange continues to attract significant inflows and maintain its position as a dominant player in the crypto market. The record inflows and high trading volumes demonstrate strong investor confidence in the platform, indicating a positive outlook for Binance in the foreseeable future.
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