South Korea’s National Tax Service has conducted a special audit of Korea Digital Exchange, which operates the local cryptocurrency exchange Flybit.
- On Tuesday, the tax service, managed under the nation's Ministry of Economy and Finance, sent a team of five to the firm's offices in Gangnam, Seoul, to investigate and audit the exchange, according to a report by CoinDesk Korea.
- The investigators requested data and transaction details from 2017 to 2019.
- According to CoinDesk Korea, the National Tax Service may conduct such special investigations if it spots anomalies between actual transaction data and reported data, or if it suspects tax evasion.
- In April, the Korea Digital Exchange renamed its crypto trading platform from Dexko to Flybit.
- Similar special tax audits were carried out at the Bithumb and Coinone exchanges in 2018, which resulted in hefty tax bill for Bithumb.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.