Binance CEO Richard Teng recently shared that the exchange experienced record inflows and one of its highest trading volumes this year amidst a jittery market on August 5th. Teng revealed that Binance recorded a net inflow of $1.2 billion in the past 24 hours according to DefiLlama’s CEX Transparency metrics. Data from DeFillama indicated that Binance’s inflows had reached over $2 billion as of press time, surpassing its closest competitor Bybit by 5x. This surge in inflows is not surprising given that Binance is the largest crypto exchange by trading volume and accounts for around 50% of the market share according to Kaiko data.
Strong Investor Confidence
Despite the market downturn and volatility, Teng emphasized that the substantial inflow of funds into Binance reflected strong investor confidence in the platform. The global stock and crypto markets experienced significant declines on August 5th due to a surge in the Japanese yen triggering a rapid unwinding of carry trades. This led to a sell-off resulting in substantial losses for investors holding major digital assets like Bitcoin and Ethereum. However, Binance’s performance remained robust amidst the turmoil.
Tax Issues in India
While Binance continues to thrive in the face of market challenges, the exchange is currently 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 allegedly generated over 4,000 crore Indian rupees (equivalent to $400 million) from Indian clients, with the funds being credited to Nest Services Limited, a Binance Group entity based in Seychelles. Indian tax authorities have sent notices to Binance offices in Seychelles, the Cayman Islands, and Switzerland. Initially, these notices were ignored, but Binance has since appointed a local attorney to address the tax issues. This incident marks the first time that Indian tax authorities have targeted a crypto firm with formal notices.
Binance’s resilience in the face of market panic and volatility is commendable. Despite the challenges posed by the global economic climate and tax issues in India, the exchange continues to attract substantial inflows and maintain strong investor confidence. It will be interesting to see how Binance navigates these hurdles and sustains its position as a leading player in the crypto market.
