Bithumb Confident of Victory in Disputed USD 67m Tax Bill Case

Bithumb Exchange Legal South Korea Tax

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

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June 26, 2023 06:53 EDT

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South Korean market-leading crypto exchange Bithumb may win its USD 67 million legal struggle against the country’s tax authorities, per legal and industry officials.

According to the Digital Times, analysts believe that Bithumb has the upper hand in its fight against a tax bill served to the company in December last year. The South Korean tax authority stated at the time that overseas clients had been using the platform tax-free, and calculated that their transactions had incurred a bill of USD 67 million – payable by Bithumb, rather than its customers.

In January this year, Bithumb launched a suit against the tax authority, calling the bill “groundless.”

And half a year later, it looks like Bithumb could successfully overturn the bill, reported the media outlet.

Bithumb has issued an audit into the legality of the unprecedented tax bill, and concluded that it had received “reasonable assurance” that it would not need to pay the taxman’s charges.

However, the same media outlet said that the court’s decision in Bithumb’s case was “long overdue,” with tax law-related cases usually resolved within 90 days.

Regardless, the industry appears to agree that Bithumb is unlikely to be forced to shell out. Experts pointed out that South Korean crypto tax laws are still to be voted on by the National Assembly, which is not currently in session. Proposals to introduce a 20% tax levy on crypto trading earnings over around USD 2,100 are in place, but will not be promulgated until at least October 2021.

An unnamed crypto exchange executive stated that the fact that the taxman had not subsequently served any other exchange with a similar tax bill was a clear indication that Bithumb was almost certain to win its case.
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