Investigation Into Bithumb: NTS Examines Exchange & Real Owners For Tax Compliance

• The National Tax Service (NTS) of South Korea is conducting a “special tax examination” on Bithumb Korea and Bithumb Holdings.
• The suspected genuine proprietors of the exchange have also been investigated by the police.
• A former chair of Bitchumb was exonerated of fraud charges involving $70 million on 3 January.

The National Tax Service (NTS) of South Korea is currently investigating the cryptocurrency exchange Bithumb Korea and Bithumb Holdings for possible tax violations. This special tax examination is being conducted to ensure that Bithumb is compliant with local taxation laws. In addition to the investigation into the exchange, the authorities are also looking into the alleged real owners of Bithumb, Kang Ji-yeon and Kang Jong-Hyeon.

The NTS’s 4th Bureau of Investigation of the Seoul Regional Tax Service is leading the investigation into Bithumb. This bureau is responsible for handling unusual tax disputes. The NTS will be monitoring the company’s domestic and foreign transactions to confirm the accuracy of their tax operations. Furthermore, the NTS will be looking into the actions of the accused shareholders to see if they have been compliant with the tax laws.

This is not the first time that Bithumb has been audited by the authorities. In 2018, the NTS conducted a similar audit and determined that Bithumb owed 80 billion won (more than $64 million) in income tax.

Recently, a former chair of Bitchumb was exonerated of fraud charges involving $70 million on 3 January. Unfortunately, this news was overshadowed by the death of an executive at Bithumb’s biggest shareholder on 30 December. The executive was being investigated for stock price manipulation and embezzlement. His death was the latest in a string of cryptocurrency billionaires who passed away without providing closure to their cases.

The National Tax Service of South Korea is continuing to investigate Bithumb and its alleged real owners to ensure that they are compliant with local taxation laws. The NTS’s 4th Bureau of Investigation of the Seoul Regional Tax Service is leading the investigation and will be monitoring the company’s domestic and foreign transactions to confirm the accuracy of their tax operations. Furthermore, the NTS will be looking into the actions of the accused shareholders to see if they have been compliant with the tax laws. It remains to be seen what the outcome of this investigation will be.