South Korean regulators target Bithumb in new probe

Published at: Jan. 10, 2023

The South Korea-based cryptocurrency exchange Bithumb is under a “special tax investigation” by the country’s National Tax Service (NTS), according to local reports.

On Jan. 10 tax agents raided the exchange’s headquarters in the country’s capital city Seoul as a part of a compliance investigation. The investigation was carried out by the 4th Bureau of Investigation of the Seoul Regional Tax Service, which specifically investigates “special tax investigations”, as opposed to standard ones.

Previously, Bithumb was under a special tax investigation in 2018 by the NTS, through which it won roughly $64 million in income tax.

This story is developing and new details will be added as more information becomes available.

Tags
Related Posts
Bithumb former chair Lee Jung-Hoon acquitted in the first instance
Lee Jung-hoon, the former chair of the South Korean cryptocurrency exchange Bithumb, was found not guilty on Jan. 3 by the 34th Division of the Criminal Agreement of the Seoul Central District Court. Jung-Hoon was on trial under accusations of violating the Act on the Aggravated Punishment Of Specific Economic Crimes due to fraud. The case has been ongoing since October 2018, when the former chairman allegedly defrauded 100 billion won ($70 million) during negotiations for the acquisition of Bithumb from Kim Byung-gun, chairman of the cosmetic surgery company BK Group. Jung-hoon could’ve faced an 8-year sentence had he been …
Regulation / Jan. 3, 2023
South Korea’s crypto regulation is now expanding to foreign businesses
Due to their anonymity or pseudonymity, digital assets are perceived as entailing the risks of money laundering and financing terrorism. In October 2018, the Financial Action Task Force (FATF) adopted changes to its recommendations on financial activities involving digital assets, adding the definitions “virtual asset” (VA) and “virtual asset service provider” (VASP). Since then, the FATF has adopted a risk-based approach to VA activities or operations and VASPs. This new approach includes the supervision of VASPs to ensure compliance in the areas of licensing and registration and preventive measures such as customer due diligence, transaction reporting and record-keeping. It also …
Regulation / Aug. 13, 2021
South Korea moves to ban cross trading for crypto exchanges
South Korea’s Financial Services Commission has moved to ban cross trading on crypto exchanges in the country. The move is part of a raft of amendments to the country’s Act on the Reporting and Use of Certain Financial Transaction Information. Cross trading, an illegal practice in many jurisdictions, involves offsetting buy and sell orders for the same asset (at the same price) without recording the transaction on the order book. However, according to a report by local media outlet Newsis, exchange operators in South Korea have bemoaned the planned prohibition stating that the move would cause significant disruptions to their …
Regulation / June 7, 2021
Bithumb Hong Kong subsidiaries reportedly face civil suit from Thai partner
Bithumb’s Hong Kong affiliates are reportedly facing a civil suit for breach of contract. According to a Tuesday report by the Korea Times, the suit is being initiated by a former Bithumb partner in Thailand, which is accusing the South Korean-headquartered exchange of unilaterally halting its business in Thailand and causing major losses. The Thai firm — which remains unnamed — is reportedly preparing to file a lawsuit against Bithumb’s Hong Kong subsidiaries, including Bithumb Global Holdings and GBEX, as well as top company executives in July. According to the plaintiff firm, Bithumb’s Hong Kong-based entities were allegedly involved in …
Bitcoin / July 6, 2021
Indian taxman recovers $6.62M from WazirX for evading tax on commission
Indian crypto exchange WazirX has reportedly paid over $6.62 million (49.2 crore rupees) following non-payment of Goods and Services Tax (GST) on trade commissions. The total recovery includes the pending tax of $5.43 million (40.5 crore rupees), the interest and a penalty for non-payment. Government officials from the Central GST and Central Excise committee (CGST Mumbai Zone) recovered the funds from the crypto exchange after detecting a GST evasion of $5.43 million on the commissions. A typical GST fraud involves creating fake invoices without actually moving the goods between the seller and the buyer. Officers of CGST Mumbai East comm'te …
Blockchain / Jan. 1, 2022