South Korea’s Regulatory Authorities targets Bithumb. Moreover, the Bithumb is now the subject of a new probe initiated by the country’s regulators
South Korea-based cryptocurrency exchange Bithumb is now the subject of a new probe initiated by the country’s regulators. According to nearby reports, the National Tax Service (NTS) has initiated a “special tax investigation” into the matter.
In 2018, the NTS launched a special tax investigation into Bithumb that resulted in a staggering $64 million income tax victory. Now, the agency is looking into the cryptocurrency exchange for potential money laundering violations.
Evenmore, after former Bitchumb chair Lee Jung-Hoon was acquitted of their $70 million fraud charges on the 3rd of January, this game-changing development emerged. Significantly, the new investigation is part of the NTS’s strategy to crack down on tax evasion. in the cryptocurrency industry.
Investigation on Bithumb Expected to Bring Significant Changes
On the tenth of January, tax investigators raided the exchange’s main offices in Seoul. This happens as a measure to ensure regulations were being followed. Added to this, the NTS believes that Bithumb may have evaded taxes, circumvented foreign exchange laws, and possibly conducted fraud.
In addition, on Dec 30th, not long before the acquittal was declared, Park Mo – an executive of Bithumb’s most significant shareholder- passed away. Furthermore, he had been under investigation by local law enforcement for suspicion of misappropriation of funds. and stock price manipulation crimes.
Furtheremore, the global regulators have been keeping a watchful eye on the cryptocurrency industry. In light of the chaos that has ensued. The ongoing investigation into Bithumb is expected to bring about significant changes. More so, changes in the way South Korean exchanges operate and how they are regulated. Notably, this could have a ripple effect across other countries that are already making strides in regulating the cryptocurrency industry.
