The demand for an additional tax from the cryptocurrency exchange Bithumb is fully justified. This is the view of the National Tax Service of South Korea.
Korean tax service director indicates that the $70 million tax bill levied on Bithumb last year is legitimate. The issue is still under appeal in the courts.
The bill came from transactions made by non-residents of ROK on Bithumb.
— TheNews.Asia (더뉴스아시아) (@TheNewsDotAsia) October 12, 2020
The agency responded to a recent statement by Pak Hyung-su, a representative of the Planning and Finance Committee of the National Assembly. According to him, the tax authorities’ demands are unfounded. Under current law, income from personal cryptocurrency transactions is not taxed.
At the end of 2019, the National Tax Service demanded 80 billion won ($68.9 million at the time) from Bithumb as tax on profits earned from investments by foreign users of the exchange. The company is appealing the decision in court.
This is not the only problem the trading platform has faced recently. In September, the Seoul police conducted a series of searches at Bithumb offices.
After that, the exchange’s CEO, Lee Jong-hoon, was summoned for questioning in the case of fraud involving the native Bithumb token BXA.
Subscribe to ForkLog news on Facebook!