Binance CEO Richard Teng revealed that the exchange saw record inflows and one of the highest trading volumes this year as investors panicked in the jittery market on August 5.
Teng wrote:
“Amid the macroeconomic environment and yesterday’s market decline, Binance has recorded net inflows of $1.2 billion over the past 24 hours, according to DefiLlama’s CEX Transparency metrics.”
According to DeFillama factsBinance’s inflows had risen to over $2 billion at the time of writing, which is 5x higher than its biggest rival, Bybit.
Meanwhile, these numbers are not surprising as Binance is the largest crypto exchange by trading volume, controlling around 50% of the market, according to Kaiko. facts. Nevertheless, Teng stated that the substantial inflows into the exchange reflected investors’ strong confidence in the platform.
On August 5, global stock and crypto markets faced significant declines as a rise in the Japanese yen led to rapid unwinding of carry trades. This shift accelerated a sell-off, resulting in significant losses for investors who own significant digital assets such as Bitcoin and Ethereum.
Tax challenge in India
Despite strong market performance, Binance faces significant tax issues in India.
Reports 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).
According to the report, Binance generated 4,000 crore Indian rupees (over $400 million) from Indian customers. This money was credited to Nest Services Limited, an entity of the Binance Group based in the Seychelles.
Indian tax authorities sent notices to Binance offices in Seychelles, Cayman Islands and Switzerland. Initially these were ignored, but Binance has now appointed a local lawyer to address the tax issues.
Meanwhile, this case marks the first time that the Indian tax authorities have targeted a crypto company with such formal notices.