Bithumb has passed a three long months of tax investigation by South Korean government but now facing huge tax bill. Since, there was no evidence of illegal activities, tax evasion and deferral business operations.
Bithumb to clear tax investigation
The largest cryptocurrency exchange of South Korea’s Bithumb were involved in three months of investigations by multiple government agencies like National Tax Service (NTS), Korea Financial Intelligence Unit (KFIU) and Financial Services Commission (FSC). The deep investigation involved Bithumb’s headquarters in Gangnam-gu Seoul and all system files were detained and measured entire taxation details.
The National Tax Service official stated;
“The [National Tax Service] has conducted a tax investigation against Bithumb for the 2014 to 2017 business years. I know that Bithumb has decided to pay the related taxes without any objection to the imposed tax amount. No charge of tax evasion was found, so prosecution charges against tax portal were not carried out”.
The Bithumb was targeted to the investigation when it displayed its 171-fold increase in profits in a year. Therefore, the NTS wanted to make sure that each and every crypto business in South Korea have settled taxes and exactly discloses their profits, losses and holdings.
A spokesperson of National Tax Service (NTS) noted that;
“NTS initiated several investigations into Bithumb between 2014 and 2017. And over the past four years, Bithumb has continuously paid all of the taxes imposed to the company without any conflict with the NTS. While a $28 million tax was imposed onto Bithumb, no evidence tax evasion and illicit activities was shown. And the NTS closed the investigation into Bithumb officially, clearing the company”.
Initially, NTS plans is to prevent every crypto dealing companies from evading taxes. Accordingly Bithumb’s clearance stood as a beneficial for whole cryptocurrency industry. Therefore, it added the authenticity to the crypto sector in South Korea which hepls to build trust from local investors.
In early May the country was planning to legalize the cryptocurrency within the country. Meanwhile, South Korea’s National Assembly proposed a plan to lift the ban on ICO, hence to allow domestic Initial Coin Offering again.
In addition, on May 29, 2018 South Korean based the largest cryptocurrency exchange, Bithumb announced to add new coins 0x (ZRX) and Augur (REP) into its trading list. In terms of trading, Bithumb exchange holds world’s sixth and first place in South Korea.