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 South Korean National Tax Service (NTS) has launched a tax investigation of two of the country’s largest bitcoin exchanges, Bithumb and Coinone, Yonhap reported on Wednesday.

“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.

Coinone said the tax investigators asked basic questions such as the company size and the number of employees, the Hankyoreh detailed. According to SBS News, in addition to asking questions, the “investigators have confiscated financial data and computer hard disks” from Bithumb.

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

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