Big South Korean cryptocurrency exchange Bithumb is reportedly searching for a $68.9 million (80 billion won) tax bill to pursue administrative litigation. KoreaHerald, an English-speaking local news service, announced on Dec. 29 that the local tax office handed over 80 billion won in trade taxes.
The first such occurrence in South Korea
The report reports that the National Tax Service pressured the exchange to pay the withholding taxes on foreign customers ‘ trading activities according to documents released by Bithumb’s largest shareholder Vidente through the financial supervisory services. Also, Vidente officially discovered the tax earlier this week after buying a 34.24% stake in the cryptocurrency exchange parent company.
KoreaHerald states that withholding tax must be paid by a foreign corporation that has no permanent establishment in South Korea. Today, the cryptocurrency trading industry has not yet been subject to such taxation laws. Furthermore, Bithumb plans to fight to stop paying the bill while adhering to the decision and seeks administrative action.
2019 for Bithumb
For Bithumb, this was a tough year. The company was sued in June for its supposed failure to take appropriate measures to protect personal information. Which was later probably used to steal funds from the site by hackers. While in March, Bithumb saw more than a million EOS (at the time around $12.5 million) siphoning in a hack from their hot wallet.
As discussed in a dedicated in-depth piece, important advances in cryptocurrency taxation have been observed this year. It seems that cryptocurrencies realized by countries around the world are here to stay and change their crypto-tax policies as a result so as not to skip the income.
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