The South Korean crypto exchange Bithumb is taking legal action against the National Tax Service to nullify the massive tax of nearly $70 million. The Tax Tribunal has 90 days to determine whether to grant or dismiss Bithumb’s motion. Bithumb recently announced to invest $8 million into South Korea’s regulation-free zone blockchain development in Busan.
Bithumb called the tax bill “groundless.”
The leading crypto exchange of South Korea was slapped with a massive tax bill of 80 billion won ($70 million) by the country’s national tax service. The National Tax Service forced the exchange to pay the withholding taxes on trading activities of foreign customers. Korean Times reported that Bithumb called the tax bill that NTS imposed on it “groundless.” Bithumb officials said that they paid the full amount and have since been preparing for arguments.
Crypto earnings are tax-free in South Korea for now.
Currently, income tax is not applied to earnings from cryptocurrencies in South Korea, as there is no legal definition of digital assets in the constitution. South Korean regulators are currently studying approaches of other countries to amend tax laws regarding cryptocurrencies. Officials said that the crypto assets would require legal status before they can be added to the law.