Bithumb Makes Plans to Litigate Tax Bill

News / 29.12.2019

Bithumb, a South Korean crypto exchange, is thinking of undertaking administrative litigation over tax bills. The value of the tax bill is $ 68.9 million. On the 29th of December, the KoreaHerald pointed out about the local tax agency passing along 80 billion won in taxation on Bithumb.

The documents published by Vidente, the largest shareholder of the exchange, show that the National Tax Service forced Bithumb to pay withholding taxes on international customers’ trading activities. Reportedly, Vidente only got aware of the tax earlier this week after acquiring a 34.24% stake on the exchange.

Bithumb State and Its Response to the Payment of Withholding Tax

KoreanHerald explained that a foreign corporation must pay withholding tax with no permanent establishment in South Korea. Nevertheless, those taxation rules do not apply to the crypto-trading industry; hence, the exchange has plans to challenge the tax bill payment by considering administrative litigation. 

Bithumb had it rough this year since it got prosecuted for its alleged inability to develop appropriate means of protecting personal information in June. In March, hackers got hold of 12.5 million USD worth of EOS from its hot wallet. Recently, many countries are making cryptocurrency tax policies to enjoy revenues from the digital currencies sector.

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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.