3 June 2023
Tax Investigation for Korean Crypto Exchange Bithumb
Yonhap News, a Korean news organization, reports that the Korean National Tax Service (NTS) has opened a tax investigation into the activities of Bithumb Holdings as well as its subsidiaries. On January 10 it was reported that NTS representatives had visited the Gangnam district of Seoul to meet with executives from both companies. Law enforcement agencies in many countries are looking into Bithumb Korea, Bithumb Holdings, as well as its affiliates for possible tax evasion by probing both local and foreign business dealings.
Also Read: The Future Of Cryptocurrency Adoption In Germany
What is a Cryptocurrency Exchange?
Any company that facilitates the buying and selling of Cryptos and other digital currencies for other assets, such as fiat cash or other Cryptocurrencies, is known as a Cryptocurrency exchange or digital currency exchange (DCE). Transactions might take contactless payments, money transfers or other kinds of payment in return for virtual monies or Cryptos. Both market participants and matching networks may collect charges on top of the gap between the buy and sell prices of a Cryptocurrency on their network. Robinhood and eToro are two brokers that specialize on stocks and other assets in addition to Cryptos; nevertheless, they allow Cryptocurrency purchases but not withdrawals to Cryptocurrency wallets. But you can get your bitcoin out of deeply committed exchanges like Binance as well as Coinbase. In most cases, a Cryptocurrency exchange will provide the option to deposit funds directly into a user's Cryptocurrency wallet. Few allow you to take dollars from ATMs all around the globe with nothing more than your prepaid card and your digital currency balance.
Also Read: Top 5 US Bitcoin Online Gambling Sites In 2022
When compared to Crypto.com, Bithumb's net flows are far bigger, making it one of the leading Cryptocurrency exchanges worldwide. The amount of trades on the exchange is increasing, but regulators in South Korea are conducting many investigations into the market.
The probe was performed by the 4th Bureau of Inquiry of the Seoul Regional Tax Service, which focuses on "special tax inquiries" rather than routine inquiries. It's also claimed that Mr. Kang Ji-yeon, the entrepreneur widely thought to be the true owner of Bithumb and a key actor in the corruption case involving related firms, as well as Mr. Kang Jong-hyeon would be the subject of an inquiry into any potential tax violation charges.
Cryptocurrency Market Recovers
The Cryptocurrency industry's worth has dropped below $750 billion despite attempts at recovery over the last two months, which are mostly attributable to the FTX crash and its subsequent spread. Any uptick in December 2022 was quickly disproven. The worth of all Cryptos together topped $815 billion on Tuesday, suggesting that the market is performing well so far in 2023. The total value of all Cryptocurrencies has increased by over $60 billion, or 8.2%. The Cryptocurrency marketplace needs this kind of enthusiasm in order to start its ultimate rise to $1 trillion.
More on Tax Investigation for Bithumb
Kang became a popular figure when an exposure in the mainstream media disclosed his affair with Park Min-young, a famous actress in South Korea. The sister of Kang runs 2 successful businesses: Inbiogen as well as Bucket Studio. These businesses have been dubbed "Bithumb related enterprises," suggesting that Kang has bought them. There have been previous inquiries into Bithumb.
In October of 2018, it was alleged that previous chairman Jung-Hoon had violated the rules as well as violated the Code of Conduct on the Aggravated Punishment of Specific Economic Crimes when he organized the acquisition of Bithumb from Kim Byung-Gun. Yet it was only just established that he is innocent. It is assumed that the bitcoin exchange's ownership structure is complex and challenging due to the large number of investors that own stakes in the firm. Many of these companies are publicly traded but have no other connection to the blockchain or Cryptocurrency sectors. One of the vice presidents of such businesses was found deceased outside of his home on 31st December 2022.
Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice.