Bithumb Crypto Exchange Served With $69 Million Tax Notice

[hellenjones260]

Bithumb, one of the leading crypto exchanges from South Korea has been served with a tax notice amounting to $69.3 million, reported a local daily. The news about the taxation was confirmed by Vidente Co., one of the most significant stakeholders in Bithumb. The taxation levied on the exchange by South Korean authorities also makes it first of its kind as the authorities have never taxed crypto trading service providers in the past.
The $69.3 million tax imposed by the National Tax Service (NTS) is a withholder tax as per the local laws. The NTS alleged that Bithumb failed to withhold taxes of foreign customers and the income generated from these international customers have been deemed as miscellaneous income. All the gains from the crypto trading would be taxed under asset laws.

[Alcor]

It turns out that the exchange first waited for the tax service about the trading volume and other information related to it, and the tax authority, already using this information, determined the total amount of tax to be paid by the exchange. What is the annual profit of this exchange, if the tax amount is about $ 70 million. It seems that in the future this exchange will be forced to establish additional fees from traders in order to pay similar taxes in the future. So it turns out that we will be forced to pay taxes to the state on whose territory the exchange is located.
Many still claim that decentralized cryptocurrencies cannot be taxed. However, practice shows the opposite. This is just the beginning.