India demands $86 million in unpaid GST from crypto exchange Binance. Indian law requires 1% TDS on crypto transactions and 30% tax on profits. Binance plans to resume operations in India after being banned in January 2024 for noncompliance.

In a significant move, Indian authorities have demanded nearly $86 million in unpaid Goods and Services Tax (GST) from the cryptocurrency exchange Binance. This marks a pivotal moment as it is the first instance of the Indian government levying a tax demand on any crypto exchange. It comes barely a month after India’s financial watchdog, the Financial Intelligence Unit (FIU), imposed a 188.2 million rupees ($2.25 million) fine on Binance for violating India’s anti-money laundering (AML) rules. India’s stringent crypto tax framework The Directorate General of Goods and Service Tax Intelligence (DGGI) issued the demand on August 6, highlighting the rigorous enforcement of the country’s tax regulations on cryptocurrency transactions. According to Indian law, all crypto service providers and investors are required to pay a 1% Tax Deducted at Source (TDS) on every crypto transaction, regardless of its value. Additionally, a 30% tax is imposed on all profits derived from crypto investments. These regulations aim to ensure proper tax compliance and curb potential tax evasion in the burgeoning crypto market. While Indian crypto exchanges such as WazirX and CoinDCX have implemented internal mechanisms to simplify tax obligations for their users, offshore exchanges like Binance have lagged in enforcing these requirements. Recently, Binance, along with several other offshore crypto exchanges, faced a ban in India in January 2024 due to non-compliance with local regulations. However, Binance has shown intent to resume operations in the region, contingent on settling its tax liabilities. The DGGI’s notice underscores the government’s commitment to holding all market participants accountable, regardless of their geographical base. It signals a more stringent regulatory environment for crypto exchanges operating in India. As Binance moves forward with plans to restart its operations after clearing its dues, this case sets a precedent for how India might handle similar situations with other offshore crypto platforms. The coming months will be crucial for Binance as it navigates this complex regulatory landscape and strives to regain its foothold in the Indian market.

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TrumpCoin crashed by 95%, plummeting from $0.00555 to a low of $0.0001203. Trading volume surged by 169%, reaching $8.91 million despite the price drop. Controversy surrounds TrumpCoin’s origins, with claims involving Donald Trump denied.

In a dramatic turn of events, TrumpCoin (DJT), a Solana-based meme coin using former President Donald Trump’s name and image, has experienced a steep price drop. The token’s value plummeted by 95%, falling from $0.00555 to a low of $0.0001203 before recovering to around $0.00042 at press time.

Despite the massive price drop, trading activity for TrumpCoin surged. Data from Coinmarketcap reveals a 169% increase in trading volume, which stood at $8.91 million at press time. While some may link the surge in trading activity to investors trying to offload their holdings, the total value locked (TVL) in TrumpCoin stands at approximately $23.1 million, reflecting ongoing investor interest despite the sharp price decline. Why has TrumpCoin crashed? The broader crypto market downturn significantly influenced TrumpCoin’s fall. A large-scale sell-off in the crypto market saw Bitcoin and Ethereum prices drop by 10% and 18%, respectively, erasing at least $500 billion from the market capitalization within three days. The equity markets were also affected, with the S&P 500 falling 4.4%, driven by weak employment data and disappointing earnings from major tech firms. Prior to the current market turmoil, Martin Shkreli, infamously known as “Pharma Bro,” claimed his involvement in creating TrumpCoin, sparking rumours that the project had official ties to Donald Trump. Shkreli alleged that Trump and his son Barron were behind the memecoin, a claim that Roger Stone, a close aide to Trump, vehemently denied. This controversy led to over $6.3 million in bets on the authenticity of TrumpCoin on the crypto betting site Polymarket. Despite reaching an all-time high of $0.01806 in June 2024, TrumpCoin has faced a steep decline, marking an all-time low of $0.0001203 on August 6, 2024. The meme coin situation remains fluid amid the ongoing cryptocurrency meltdown and the controversy around who is behind the meme coin.

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