Binance Owned WazirX Fined and Faces Investigations in India

WazirX becomes the first cryptocurrency exchange to become a part of the tax crackdown the regulators are conducting on exchanges in the region.

By
Anirudh Tiwari
on
January 4, 2022
Category:
Blockchain News

Bad Start to the New Year

The Indian cryptocurrency exchange owned by Binance, WazirX, ended the year on a sour note when the taxman found tax discrepancies with the exchange’s operations.

The Mumbai GST Commissionerate found a 40.5 Crore INR, i.e., nearly $6 million, GST evasion on Dec. 31, according to the official statement from the Press Information Bureau. The agency has recovered 49.20 Crore INR, i.e., $6.6 million, from the exchange, including interest and penalties. In the statement, the agency has warned that it will be covering all the cryptocurrency exchanges falling in the Mumbai zone and will intensify the drive further.

“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,” mentioned the exchange in a statement post this fiasco.
Source

Binance acquired WazirX back in November 2019 in a bid to launch additional fiat to crypto gateways. The exchange has since grown to provide cryptocurrency-based services to millions of users residing in the Indian subcontinent. WazriX has stated that the trading volume on its platform has 1,735% year on year to over $43 billion in 2021.

“The young demographic in India give an edge to adapt and build on new financial technologies, and I believe this will play a vital role in making India a global blockchain innovation center to also spur cryptocurrency adoption throughout the larger public in the country. The acquisition of WazirX shows our commitment and dedication to the Indian people and strengthen the blockchain ecosystem in India as well as another step forward in achieving the freedom of money,” stated CZ (Changpeng Zhao), the CEO of Binance post the acquisition.


What is WazirX?

WazirX is one of the leading cryptocurrency exchanges operating in India. The exchange was founded in March 2018 by Computer Science engineer Nischal Shetty alongside co-founders Sameer Mhatre and Siddharth Menon. The platform launched its own token, WRX, in Feb. 2020 that has since grown to have a market capitalization of $389.1 million, as per data from CoinMarketCap.

Find more about WazirX here:

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Anirudh Tiwari

Anirudh is a cryptocurrency analyst and writer who specializes in derivatives, DeFi, regulations and CBDCs. He has a Master’s degree in Finance. Before delving into crypto, he worked with a leading U.S. based investment bank. Apart from work, he is a music connoisseur and likes to play the drums. His largest holdings in crypto are Ethereum, Cardano, and Polkadot.

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