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Binance owned WaziriX alleged of tax evasion in India


TL;DR Breakdown

  • WaziriX alleged of tax evasion by Indian authorities.
  • Exchange says allegation is a case of lax in clarity, regulation.
  • Other exchanges also being investigated in India.

Binance-owned crypto exchange WazirX, domiciled in India, has been identified by tax authorities who allege the firm of evading tax.

In a statement, GST Mumbai East Commissionerate of Mumbai Zone said after investigating the business activities of cryptocurrency exchange WazirX, they have detected GST Evasion of Rs 40.5 Crores.

They noted that the Commissionerate has also recovered Rs 49.20 Crores in Cash pertaining to [goods-and-services tax] evaded, interest and penalty.

That amount equates to more than $6 million. The commissionerate also indicated that it was investigating other crypto exchanges as well.

WaziriX response to tax evasion claims

According to the Binance-owned exchange, WaziriX, the case is a subject of lack of clarity in regulation. The exchange maintained that it has been diligently paying tens of crores worth of GST every month.

The exchange added: “There was an ambiguity in the interpretation of one of the components which led to a different calculation of GST paid. However, we voluntarily paid additional GST in order to be cooperative and compliant. There was and is no intention to evade tax. That being said, we strongly believe that regulatory clarity is the need of the hour for the Indian crypto industry.”

Other exchanges being investigated amidst backdrop of stiff crypto regulation

Despite fingering WaziriX, reports have it that other exchanges in the country are also being investigated.

The moves are notable, given the broader backdrop of the still-unsettled regulatory framework for crypto in India.

According to TheEconomicTimes, the Directorate General of GST Intelligence — a law enforcement agency under the Ministry of Finance — is also involved in the investigations.
According to the Times report, the exchanges named in the report are CoinDCX, Unocoin, Coinswitch Kuber and BuyUCoin. Per CoinDesk, the searches took place on Saturday.

Muhaimin Olowoporoku

Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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