Binance CEO Richard Teng recently announced that the exchange experienced record inflows and one of its highest trading volumes in a single day this year. Teng mentioned that amidst the current macroeconomic climate and market uncertainty on August 5th, Binance recorded a net inflow of $1.2 billion in the past 24 hours. This influx of funds was verified by DefiLlama’s CEX Transparency metrics. According to data from DefiLlama, Binance’s total inflows had reached over $2 billion at the time of the announcement, which is significantly higher than its closest competitor, Bybit.
It is not surprising that Binance has attracted such substantial inflows, considering it is the largest cryptocurrency exchange by trading volume and controls approximately 50% of the market, according to Kaiko data. Despite the market turmoil on August 5th, Teng expressed that the significant inflow to the exchange reflects strong investor confidence in the platform. The global stock and crypto markets faced considerable declines on that day, triggered by a surge in the Japanese yen leading to the unwinding of carry trades and subsequent sell-offs of assets like Bitcoin and Ethereum.
In addition to its market success, Binance is currently dealing with significant tax-related challenges in India. Reports from The Times of India revealed that the Directorate General of Goods and Service Tax Intelligence (DGGI) issued a demand of 722 crore Indian rupees (approximately $86 million) to Binance for unpaid Goods and Services Tax (GST). Binance reportedly generated 4,000 crore Indian rupees (over $400 million) from Indian clients, with the funds being credited to Nest Services Limited, a Binance Group entity located in Seychelles.
Indian tax authorities took action by sending notices to Binance offices in Seychelles, the Cayman Islands, and Switzerland, which were initially ignored. Binance has now engaged a local attorney to address the tax issues. This case marks the first instance of Indian tax authorities formally targeting a cryptocurrency firm with such notices, highlighting the increasing scrutiny faced by the industry globally.
Binance’s record inflows amidst market volatility demonstrate the confidence investors have in the platform. However, the tax issues in India serve as a reminder of the regulatory challenges and legal complexities that cryptocurrency exchanges must navigate as the industry continues to evolve.
