Bithumb Holdings Investigated for Tax Evasion by South Korean Tax Authorities

• South Korean Tax Authorities are investigating crypto exchange operator Bithumb Holdings for potential tax evasion.
• The investigation is being conducted by a unit dedicated to “special tax investigations”.
• This is not the first time Bithumb has been at the center of such an investigation.

South Korean authorities are conducting an investigation into crypto exchange operator Bithumb Holdings for potential tax evasion. According to a Tuesday report by Yonhap News, the National Tax Service is reportedly investigating domestic and international transactions of Bithumb Korea, Bithumb Holdings, and affiliates in Gangnam-gu, Seoul. A company official confirmed the news to CoinDesk Korea, but could not share details.

The investigation is being conducted by a unit dedicated to “special tax investigations”. This is not the first time that Bithumb has been at the center of such an investigation. The National Tax Service also conducted a special tax investigation on Bithumb Korea in 2018 which concluded that the company was not guilty of tax evasion. However, the investigation did result in the collection of 80 billion won in income tax.

In addition, authorities have questioned businessman Kang Woon-ki, who is the chairman of the holding company of Bithumb Korea, over his alleged involvement in tax evasion. Kang is currently under investigation for charges of evading taxes on his overseas assets and stock profits.

It remains to be seen how this investigation will pan out for Bithumb Holdings. The company has been the subject of several investigations in the past, but for now, it appears to be cooperating with the authorities. However, if the investigation finds that the company has indeed been evading taxes, it could face significant penalties from the government.