Bithumb Crypto Exchange Reportedly Considers Litigating $68.9M Tax Bill

News / 29.12.2019

According to reports, Bithumb, a leading crypto exchange based in South Korea is considering the undertaking of administrative litigation over tax bill. The value of the tax bill is $68.9 million.

On December 29, KoreaHerald reported that the local tax agency has passed along more than 80 billion won in taxation on Bithumb.

The largest shareholder of the exchange is Vidente. KoreaHerald noted that the documents published by Vidente shows that the National Tax Service forced Bithumb to pay the withholding taxes on international customers’ trading activities. Reports reveal that Vidente discovered the tax earlier this week, following the acquisition of a 34.24 percent stake in the parent company of Bithumb.

According to the explanations provided by KoreaHerald, it is mandatory for a foreign corporation without permanent establishment in South Korea to pay withholding tax. However, such taxation rules are yet to come to play in the crypto trading industry. Bithumb is planning to challenge the bill payment and is considering an administrative litigation.

This year has been uneasy for the exchange. It was prosecuted in June for its alleged inability to put in place appropriate means of protecting personal information. Later, hackers supposedly took advantage of it to steal funds. In March, almost 12.5 million USD worth of EOS was stolen from its hot wallet.

Cointelegraph explained that there have been remarkable developments in crypto taxation this year. It seems some nations have realized that cryptos will remain with us and modified their cryptocurrency tax policies to enjoy the revenues.

 

Featured image courtesy of Shutterstock. Source: Cryptopress.

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Born in Bucharest, Marius is the founder of Crypto Adventure. Since his first contact with Bitcoin and cryptocurrencies, he never stopped believing that they are one of the most important innovations of our time, which will forever change the way business is done.