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National Tax Service Launches Tax Investigation

15:39 January 11, 2018 replay time01:55

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into Cryptocurrency Exchanges Bithumb and Coinone


The level of response from the government towards the controversial topic of cryptocurrency is intensifying.

Yesterday, the National Tax Service began investigations into banks that have opened cryptocurrency exchange accounts and officially launched tax investigations (Dec. 10).

The second-ranked business in the industry is under police investigation as well.

Kim Jong-su has more.


The National Tax Service has launched a tax investigation into the largest domestic cryptocurrency exchange, Bithumb.

Investigators from the Seoul District National Tax Service rushed into the headquarters of Bithumb at Gangnam ward in Seoul yesterday afternoon and secured relevant materials.

The National Tax Service also launched an investigation into Coinone, which is ranked 2nd in the industry and is currently under police investigation for suspicions of opening a gambling house.

The government clearly stated its policies on a strong crackdown against cryptocurrency at the end of last year and has been taking more specific measures in the new year.

The Financial Services Commission mobilized the Korea Financial Intelligence Unit and the Financial Supervisory Service early this week to investigate banks that opened accounts in cryptocurrency exchanges.

The government intends to apply pressure indirectly on cryptocurrency exchanges by inspecting whether the banks followed protocols regarding money laundering prevention and identity confirmation. Furthermore, the government intends to close down cryptocurrency exchanges if necessary should any issues come to surface.

<Choi Jong-gu/Director of the Financial Services Commission> “The government will review and promote all possible plans including shutting down cryptocurrency businesses to minimize such side effects in joint efforts with relevant institutions.”

In addition, the Ministry of Strategy and Finance is currently reviewing the issue of imposing corporate taxes for cryptocurrency exchanges as well as imposing transfer taxes for trading profits.

The domestic cryptocurrency market has overheated to the point that a global cryptocurrency information site has excluded it when computing international market prices.

It appears that the government plans to reinforce regulations on the cryptocurrency market, which has become a speculative market, through the enactment of various laws and taxes.

Kim Jong-su reporting for Yonhap News TV.

Yonhap News TV: 02-398-4441 (Inquiry on article/Report) KakaoTalk/LINE jebo23

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