11 Jun 2018
South Korean Crypto Exchange Bithumb has finally been cleared of charges for alleged tax evasion in 2017. The company has paid its tax bill of $28 million in Korean won in the middle of April.
11 June, AtoZ Markets – South Korean local news reports have stated that Bithumb, the largest cryptocurrency exchange in South Korea, has been finally cleared of charges in relation to the alleged tax evasion in 2017.
The decision to cancel the charges followed the intensive audit of Bithumb’s accounting records. The company has paid its tax bill of $28 million in Korean won in the middle of April. The official from the National Tax Service in South Korea has been quoted as saying:
“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. 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.”
Bithumb has reported a net profit of 427.2KRW for the year 2017. This accounts for a 171-fold increase from its profit of 2.5 billion KRW in 2016.
The authorities have begun their audit in January when the National Tax Service of South Korea has sent a number of its agents to Bithumb headquarters. During the following three months, the agents have been gathering data in regards to the income that Bithumb was receiving from trading commissions. They have also recorded profits from cryptocurrency dividends.
It is also known that the exchange has reportedly stated that they were not aware of the results of the investigation before the public announcement. However, the National Tax Service has stated the opposite. As per one of the local reports in South Korea, the smooth procedure of the audit “highlights an increased trust and stability in the Korean cryptocurrency market.”
Yet, reportedly, Bithumb’s tax evasion clearance comes amid accusations by Korean police that another crypto exchange Coinone’s offering of margin trading options is illegal. Authorities have claimed that this offering is considered as an illegal gambling operation that could be used for money laundering.
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