Binance Sees Record Inflows and Trading Volume Amid Market Turmoil
CEO Richard Teng of Binance recently announced that the exchange experienced a surge in inflows and achieved one of its highest trading volumes this year as investors reacted to the volatile market on August 5th.
Teng stated:
“Amidst the current macroeconomic conditions and the market downturn yesterday, Binance recorded a net inflow of $1.2 billion in the last 24 hours, as reported by DefiLlama’s CEX Transparency metrics.”
According to data from DeFillama data, Binance’s inflows have surpassed $2 billion at the time of writing, which is five times higher than its closest competitor, Bybit.
Despite being the largest cryptocurrency exchange by trading volume and holding approximately 50% of the market, these figures come as no surprise. Teng emphasized that the substantial inflow to the platform reflects the strong confidence investors have in Binance.
On August 5th, both global stock and crypto markets experienced significant declines due to a surge in the Japanese yen triggering a rapid unwinding of carry trades. This led to a sell-off, resulting in considerable losses for investors holding major digital assets such as Bitcoin and Ethereum.
Tax Challenges in India
Despite its impressive market performance, Binance is currently dealing with substantial tax issues in India.
According to reports from The Times of India, 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).
The report revealed that Binance generated over 4,000 crore Indian rupees (approximately $400 million) from Indian clients, with the funds being credited to Nest Services Limited, a Binance Group entity based in Seychelles.
Indian tax authorities issued notices to Binance offices in Seychelles, the Cayman Islands, and Switzerland, initially going unanswered. Binance has since appointed a local attorney to address the tax concerns.
This case signifies the first instance of Indian tax authorities formally targeting a cryptocurrency firm.
