March 31, 2023

Bithumb sues South Korean tax authority

Bithumb cryptocurrency exchange sues South Korean National Tax Service (NTS) over unfairly accrued taxes of $ 69 million

At the end of last year, NTS recovered fromBithumb cryptocurrency exchange 80.3 billion won (about $ 70 million) for taxes. However, representatives of the trading platform believe that since cryptocurrencies do not have an official status in South Korea, there are no grounds for charging taxes.

“We paid the full amount and startedprepare to challenge the accrued taxes. We believe that we will be given the opportunity to clarify our position in court, ”a spokeswoman for Bithumb told The Korea Times.

As an adviser to the Financial Supervision Service notedSouth Korea's Choi Hwoa-in, this is a very prudent move from the cryptocurrency platform. According to Hwa Ying, cryptocurrencies do not have asset status in South Korea, so they should not be taxed.

“The Ministry of Economics and Finance has already clarifiedyour point of view. NTS was too hasty with taxation and did it without an appropriate regulatory framework, especially since the department is still awaiting the ministry’s response on the same issue, ”the adviser to the regulator emphasized.

Tax court must approve or rejectBithumb complaint within 90 days. Note that, as reported at the beginning of the year, the South Korean authorities began to develop new legislation on taxation of income derived from the circulation of cryptocurrencies.