Indian authorities have launched an investigation into high-net-worth traders suspected of evading cryptocurrency taxes through Binance.
India’s tax authorities have opened a wide-reaching probe into more than 400 wealthy individuals suspected of avoiding taxes on crypto transactions conducted through Binance. According to The Economic Times, the inquiry focuses on traders who operated on the platform between 2022 and 2025.
The Central Board of Direct Taxes has issued an internal notice to local tax departments across several cities, requesting a detailed report on actions taken by October 17. The investigation covers the fiscal years from 2022–23 to 2024–25, during which the traders in question allegedly bypassed tax regulations.
The probe goes beyond standard exchange activity, also examining peer-to-peer transactions facilitated by the platform in India and settled through domestic bank accounts, Google Pay, or cash.
Government policy
India’s tax system for cryptocurrencies is among the most burdensome in the world. Market participants face a 1% tax deducted at source on every transaction, coupled with a 30% tax on profits. For top-income taxpayers, the effective tax rate can reach 42.7% when including surcharges and the 4% cess, an additional levy used to fund targeted programs such as education and healthcare.
The government’s stance toward digital assets remains focused on strict control and taxation. Union Minister Piyush Goyal recently reiterated the administration’s intention to intensify efforts on developing a CBDC, while maintaining high tax rates on cryptocurrencies.
