Bithumb passes tax audit by South Korean government. The South Korean Tax Service did not detect any irregularities in the work of the popular cryptocurrency exchange Bithumb. This is reported by Finance Magnates with reference to local media.
Thus, Bithumb has been cleared of all suspicions associated with the alleged tax evasion for 2017.
Nowadays Bithumb is the largest cryptocurrency in Korea and the seventh largest in the world.
Bithumb Passes Tax Audit
On June 8, local media reported that Bithumb, which reported revenues of 427 billion won ($ 397 million) for 2017, will pay off its tax obligations after an audit of the South Korean Internal Revenue Service (IRS). As a result of the audit conducted in April, the IRS also confirmed that the inspectors did not find any illegal actions, including tax evasion. The Bithumb audit was carried out as part of a larger campaign to combat violations at the cryptocurrency exchanges in South Korea, carried out by several regulators of the country.
According to the source, the audit started in January, when the National Tax Service (NTS) sent several of its employees to the headquarters of Bithumb. Over the next three months, the tax service collected data on the income that the exchange received from trade commissions. Also inspectors recorded the profits of Bithumb, resulting from the growth of the cryptocurrency exchange rates.
“The Tax Service has conducted a review of the accounting records of the years from the 2014 to 2017 business years. Bithumb has paid the appropriate fees and taxes without objection,” National Tax Service inspector stated. “Although a very large tax amount was imposed, it does not mean that there was any implication of tax evasion from the exchange. No charges of tax evasion have been or will be pressed against the exchange at this time.”(Translated quote by Finance Magnates )
In mid-April, Bithumb paid a regular tax bill of about $ 28 million.
Cryptocurrency community were optimistic about news that Bithumb passes tax autid successfully. Users noted that clarity in the position of Bithumb in the regulatory field is a positive step forward for the entire South Korean crypto exchange industry.
Recently it became known that the Bitfinex exchange will begin to provide tax regulators with customers data. This news has caused discontent among the cryptocurrency community. Most people believed that the new Bitfinex policy, regardless of its legal framework, went too far.
Across the world, not only exchanges, but also crypto investors are increasingly faced with the need to pay taxes. For example, in April of this year, Tom Lee, a well-known crypto investor and analyst at Fundstrat Global Advisors, said that the market expects a massive outflow of capital on the eve of the last day of paying taxes in the US. In his opinion, traders had to pay about $ 25 billion to the state in the form of taxes from incomes received as a result of operations with cryptocurrencies. It is difficult to say how many traders really did this. Apparently not everyone took into account their tax obligations – the last day of paying taxes did not significantly affect the cryptocurrency market cap.