South Korean cryptocurrency exchange Bithumb Goes to Court Over $69M Tax Bill

South Korean cryptocurrency exchange Bithumb Goes to Court Over $69M Tax Bill

According to a report published by The Korea Times on Jan. 16, Bithumb filed a complaint with the NTS, suggesting that the imposed tax bill is groundless given that cryptocurrency is not a legally recognized currency. The South Korean tax tribunal now has to decide whether to grant or dismiss the exchange’s motion within 90 days.

NTS imposed a retention tax — an income tax paid to the government by the payer of the income instead of its recipient — which is often withheld or deducted from income in most jurisdictions, according to The Korea Times.

As a consequence, Bithumb is expected to pay the bill before giving the remaining income to its customers. An exchange official commented:

“We paid the full amount and have since been preparing for arguments. We believe we will be given a chance to clarify our stance in court.”

Is a clear tax scheme in South Korea forthcoming?

According to The Korea Times, Choi said that the current case with Bithumb could be a ploy by the NTS to establish grounds for taxing what were previously tax-free gains. She added that, as cryptocurrency trading has grown more common in South Korea, regulators have now likely come to view the subsequent gains as a new source of taxable income.

Trends in 3D printing in 2020

Previous article

The twitter feed flood with Bitcoin

Next article

You may also like


Comments are closed.

More in Regulations