Tax service of South Korea (NTS) has confirmed the full legality of the activities Bithumb — largest cryptocurrency exchanges South Korea. After the company repaid the tax liabilities in the amount of $28 million, the Agency announced the withdrawal of her allegations of violation of law, fraud, tax evasion and suspicious commercial transactions.
Bithumb as its main competitor in the South Korean market, UPbit, for months has been under close surveillance by the authorities, which in result led to a lengthy investigation, opened on the initiative of the NTS, the financial services Commission (FSC) and Unit the financial intelligence service of South Korea (KFIU).
The speaker of the NTS noted that inspections of Bithumb ended in late April. After ascertaining the absence of violations, the government ordered the exchange to pay taxes in the amount of $28 million.
The exchange attracted the attention of NTS after reported to increase the annual profit of 171 times; positive trend in the company’s income coincided with the increase in demand for crypto-currencies in the local market. Subsequently on 10 January goshenta seized from the head office in Seoul Bithumb a few business files, equipment and other information necessary to carry out a full audit of a company and its own crypto-currency reserves.
“In the period from 2014 to 2017 NTS has conducted several investigations in relation to Bithumb, and still the company pays taxes, never came into conflict with the NTS. Despite the fact that the company required the payment of $28 million, NTS found no evidence of tax evasion and any kind of illegal activity and, thus, officially closing the investigation and releases Bithumb from suspicion”.
Case Bithumb is of great importance for the cryptocurrency industry in General, because originally, the authorities planned to turn the investigation in an illustrative process, in order to prevent evasion of taxes imposed by other local companies. The termination of the investigation in respect of the exchange gave legitimacy to the cryptocurrency sector of South Korean economy, which has the potential to restore the confidence of investors.
Check Upbit and Bithumb in fact violations of the law led to the decrease in investment interest in the country. In particular, Upbit is suspected of stealing money from the wallets of users. First national cryptocurrency platform, closed the audits of the authorities, became Coinnest: Chairman of the exchange was arrested for fraud and embezzlement of funds.
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