Binance CEO Richard Teng recently disclosed that the exchange experienced record inflows and one of its highest trading volumes this year. Amidst the macroeconomic climate and market downturn on August 5th, Binance saw a net inflow of $1.2 billion in the past 24 hours, according to DefiLlama’s CEX Transparency metrics. This surge in inflows is attributed to investors panicking in the jittery market.
According to DeFillama data, Binance’s inflows exceeded $2 billion by press time, which is 5x higher than its closest competitor, Bybit. As the largest crypto exchange by trading volume, Binance holds around 50% of the market share, as reported by Kaiko data. Despite facing significant market declines on August 5th, Binance’s strong performance reflects a high level of investor confidence in the platform.
While Binance continues to excel in the market, it is embroiled in significant tax issues 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 ($86 million) from Binance for unpaid Goods and Services Tax (GST). Binance has been accused of generating over 4,000 crore Indian rupees (over $400 million) from Indian clients, with these funds being credited to Nest Services Limited, a Binance Group entity in Seychelles.
Indian tax authorities have sent notices to Binance offices in Seychelles, the Cayman Islands, and Switzerland. Initially, these notices were disregarded, but Binance has now appointed a local attorney to address the tax issues. This case marks the first instance where Indian tax authorities have targeted a cryptocurrency firm with such formal notices.
The market panic and downturn experienced on August 5th led to record inflows and high trading volumes on Binance. Despite facing tax challenges in India, Binance’s strong market performance and investor confidence have solidified its position as a dominant player in the cryptocurrency exchange industry.
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