Taxes in the cryptocurrency world are not an uncommon issue. In fact, the idea of taxing cryptocurrencies and crypto exchanges has been a long standing issue for many countries around the world.
However, one of the largest cryptocurrency exchanges in the world and the largest one in South Korea, Bithumb, got hit with a massive $69 million tax bill.
The information has been reported by local news outlet Pulse, which stated that Vidente Co., Bithumb’s largest shareholder, had confirmed the tax obligation in a regulatory filing this past Friday. Vidente currently holds 34.24% in the parent company of Bithumb.
According to press, the National Tax Service or NTS, the taxation authority in South Korea, has levied withholding tax on the exchange’s foreign clients’ income.
In fact, the NTS has identified Bithumb’s crypto trading of foreign customers as “miscellaneous income”, thus the exchange recognises capital gains from trading as “assets”.
However, Bithumb is fighting back, it seems. The exchange is currently planning to take legal action against NTS, so the final tax bill is subject to changes. According to another local news outlet, Bithumb considers it inappropriate for NTS to levy such a tax bill, especially when Bithumb pays both local and corporate income tax each year.
More about Bithumb can be found here:
