South Korea-based cryptocurrency exchange has been hit with an 80 billion won ($70 million) bill by the country’s national tax service.
According to the Koreaherald report, Bithumb has been slapped with nearly 70 million USD in income tax withheld from payouts to foreign customers. Bithumb has announced to appeal the decision. This the first time that the government has imposed taxes on income from crypto trading
Bithumb forced to pay withholding taxes on trading activities of foreign customers.
According to the news report, Bithumb’s largest shareholder Vidente posted documents revealing that the National Tax Service forced the exchange to pay the withholding taxes on trading activities of foreign customers. Vidente reported that they found out about the taxes after acquiring a 34.24% stake in the parent company of the crypto exchange.
A terrible year for the South Korean crypto exchange.
2019 has not been the best year for South Korea’s leading crypto exchange. In March, Bithumb lost over million EOS worth 12.5 million USD at the time in a hack. The authorities all around the world are working to collect tax from crypto-related businesses without giving them any validation. The majority of the countries still have not adopted proper cryptocurrency regulations. Earlier, the Supreme court of Russia acknowledged that digital currencies could be used to bribe officials, just like money and property.