Catenaa, Sunday, October 19, 2025-Indian tax authorities are investigating more than 400 high-net-worth Binance traders suspected of evading crypto taxes, according to The Economic Times.
The probe covers trades between 2022 and 2025, amid India’s steep tax rates on digital asset gains, which can reach 42.7% for top-bracket individuals.
The Central Board of Direct Taxes has instructed its regional offices to report progress by October 17, signaling a nationwide enforcement push.
The investigation includes peer-to-peer Binance transfers settled via domestic bank accounts, Google Pay, or cash, although cash settlements have since been discontinued.
Binance, blocked in India in 2023 over alleged regulatory non-compliance, re-entered the market in August 2024 after paying a $2.25 million penalty and registering as a “reporting entity” with India’s Financial Intelligence Unit. That registration has allowed authorities to access information on traders suspected of underreporting income.
Crypto tax in India involves a 1% withholding on transfers, a 30% profit tax, plus surcharge and a 4% cess, resulting in effective rates approaching 42% for wealthy individuals. Union Minister Piyush Goyal has emphasized plans to advance a central bank digital currency while maintaining strict taxation on private cryptocurrencies.
Separately, Binance is managing fallout from market depegs, compensating traders affected by recent record-high liquidations, as the crypto industry navigates heightened scrutiny and volatility.
