Binance Sees Record $2 Billion Inflows Amid Market Turmoil

Investor confidence in Binance remains high despite India's tax probe.

Binance CEO Richard Teng revealed that the exchange experienced record inflows of $2 billion on August 5, amidst a market downturn driven by macroeconomic concerns. Teng stated, “Amid the macroeconomic climate and yesterday’s market downturn, Binance recorded a net inflow of $1.2 billion in the past 24 hours, according to DefiLlama’s CEX Transparency metrics.” By press time, inflows had climbed to over $2 billion, five times higher than its closest competitor, Bybit.

These significant inflows underscore Binance's dominant position in the crypto market, with the exchange controlling approximately 50% of the market, according to Kaiko data. Teng emphasized that the substantial inflow reflects strong investor confidence in the platform.

On August 5, global stock and crypto markets faced sharp declines due to a surge in the Japanese yen, leading to a rapid unwinding of carry trades. This market shift accelerated sell-offs, causing significant losses for investors holding major digital assets like Bitcoin and Ethereum.

Tax Challenges in India

Despite its strong market performance, Binance is grappling with significant tax issues in India. The Directorate General of Goods and Service Tax Intelligence (DGGI) has demanded 722 crore Indian rupees ($86 million) from Binance for unpaid Goods and Services Tax (GST). Reports indicate that Binance generated over $400 million from Indian clients, with funds credited to Nest Services Limited, a Binance Group entity based in Seychelles.

Indian tax authorities have issued formal notices to Binance offices in Seychelles, the Cayman Islands, and Switzerland. Initially ignored, Binance has now appointed a local attorney to address the tax issues. This case marks the first time Indian tax authorities have formally targeted a crypto firm with such notices.

photo source / Blockonome