South Korean Regulators Investigate Bithumb and Coinone Exchanges
South Korean authorities seem to be more and more focused on the activities taking place on the cryptocurrency market. The regulators have now started an investigation against two of the biggest cryptocurrency exchanges in the country, Bithumb and Coinone.
The investigation is being conducted by the National Tax Service, which is the country's tax watchdog. The National Tax Service conducted some on-site inspections of both of these cryptocurrency exchanges.
Out of the two exchanges, Coinone is dealing with a few more problems, as the popular exchange is also under an investigation conducted by the Korean police on concerns of illegal gambling services.
The National Tax Service conducts investigation on major exchanges
The National Tax Service will be looking into the books and financial documents of the two companies. The authority will also check the sales figures of the two major exchanges. The National Tax Service checked the headquarters of both companies, but provided no details of its findings.
Both companies confirmed that the authority was investigating them, but, of course, remained silent on any details linked to the investigation. Coinone also revealed that authorities wanted to know about the company's size, as well as the number of employees. On the other hand, regarding the investigation on Bithumb, local media reported that authorities have confiscated financial data and computer hard disks.
The only thing that is certain for the moment is that the investigation is related to virtual currency taxation. The fact that South Korean authorities are looking for ways to impose taxes related to cryptocurrency transactions is no secret.
In fact, South Korean authorities have been talking about introducing regulation with the purpose to be able to impose some taxes on the cryptocurrency market. Only a couple of days ago, it has been revealed that authorities also discovered that some taxes can already be imposed under the current tax law, including corporate tax. It remains to be seen if and what taxes will be imposed.