Korean Regulators Launch Investigations of Bithumb and Coinone Crypto Exchanges
The South Korean regulators have started investigating two major cryptocurrency exchanges. The country’s National Tax Service has conducted an on-site investigation of Bithumb and Coinone. In addition, Coinone is also being investigated by the Korean police for allegedly offering illegal gambling services to investors.
Tax Authority Investigating Bithumb and Coinone
“The Seoul Regional Tax Office is investigating books and related materials including sales figures,' the news outlet described. Investigators were sent to Bithumb’s headquarters in Gangnam-gu and Coinone’s headquarters in Yeouido.
'It’s true that the NTS has come out with an investigation, but it is difficult to confirm the details of the investigation,” Bithumb was quoted by the Hankook-Ilbo. The publication elaborated:
The investigation is related to the virtual currency taxation industry analysis. The government is considering ways to impose a capital gains tax on virtual currency investment returns.
The Korean regulators are actively discussing ways to tax cryptocurrencies. Last week, they announced that some taxes are possible under the current law such as corporate tax, as news.Bitcoin.com previously reported.
Coinone Also Investigated by Police
The police believe that Coinone is a kind of gambling [business] that provides members with a margin trading service that predicts the market price after a maximum of one week and chooses the number of short sales and makes profit or loss according to the result.
However, a Coinone official contested, stating that “We have already reviewed the law [to ensure] that there is no illegality before starting the service, and we have already stopped the service from concerns of the financial authorities.”
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