South Korean cryptocurrency exchange Bithumb has been found not guilty of tax evasion, but now faces a massive tax bill, according to reports.
The country's National Tax Service launched an investigation into the firm back in January amid a wider crackdown on crypto exchanges, and has now cleared the company of wrongdoing. However, Bithumb – one of South Korea's biggest exchanges by trading volume – now faces a bill for back taxes that totals around 30 billion won (almost $28 million), according to local news source eToday.
A tax official was quoted as saying:
"No charge of tax evasion was found, so prosecution charges against tax portal were not carried out," the official continued.
The exchange has reportedly said it is yet to receive a formal notice about the final tax liability.
The country outlawed anonymous trading in January, and has moved to investigate a number of exchanges over possible crimes such as embezzlement and fraud. Most recently, a local police department said that executives at the Coinone exchange will be charged on grounds that its margin trading service is, in effect, illegal gambling.
While it briefly seemed that a ban on exchange-based trading might also be in the works, that possibility seems to have diminished, alongside regulatory moves to once more allow domestic ICOs under stricter rules.
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