Binance Sees Record Inflows and High Trading Volumes Amid Market Panic

Binance CEO Richard Teng recently shared that the exchange experienced record inflows and one of its highest trading volumes this year as investors reacted nervously to the volatile market on Aug. 5.

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.”

According to DeFillama data, Binance’s inflows had surged to over $2 billion at the time of reporting, which is 5 times higher than its closest competitor, Bybit.

As the largest crypto exchange by trading volume, controlling approximately 50% of the market according to Kaiko data, it is not surprising that Binance saw such significant inflows. Teng highlighted that the substantial influx of funds to the exchange reflected strong investor confidence in the platform.

On Aug. 5, both global stock and crypto markets experienced notable declines due to a spike in the Japanese yen leading to a swift unwinding of carry trades. This sudden shift triggered a sell-off, resulting in substantial losses for investors holding major digital assets like Bitcoin and Ethereum.

Tax Troubles in India

Despite its impressive market performance, Binance is currently dealing with significant tax challenges 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).

According to the report, Binance generated 4,000 crore Indian rupees (over $400 million) from Indian clients, with these funds credited to Nest Services Limited, a Binance Group entity based in Seychelles.

Indian tax authorities sent notices to Binance offices in Seychelles, the Cayman Islands, and Switzerland, which were initially disregarded. However, Binance has now appointed a local attorney to address the tax issues.

This case marks the first instance where Indian tax authorities have formally targeted a crypto firm with such notices, indicating a potentially challenging road ahead for Binance in India.

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