The Korean Internal Revenue Service actually set to hold $ 70M on a cryptocurrency exchange called "Bithumb".

South Korea's Internal Revenue Service (NTS) will hold taxes of $ 81 billion or $ 70 million from Bithumb, the largest cryptocurrency exchange in the United States.

Vidente, the largest investor of Bithumb Holdings, which operates Bithumb Korea, confirmed on Sunday that the amount will be held and taxes will be imposed on external customers. It may not really happen anyway.

The report is the first example of a Korean taxation agency imposing taxes on the profits of digital currency exchanges, the report said.

"The JoongAng Ilbo plans to take legal action on the tax guarantee and later balance the installment," the JoongAng Ilbo report said Monday.

The tax measure was determined based on the percentage of secondary benefits such as sporadic benefits such as lottery income prepared by the Korea Central Daily. To measure remote withdrawals in Bithumb, taxes are collected at a rate of 22% per year.

The results of activity on Bithumb's customers or the transaction itself are blurry. Bithumb did not comment on the situation at press time. According to the report, the first goal of the tax office is a remote customer exchanging digital currencies in Bithumb trading, but in this situation Bithumb pays taxes to the legislature by meetings where cash is paid on the exchange on behalf of the customer.

Seoul University taxation teacher Kim Woo-cheol said in a report, "Beatum can pay 81 billion won, theoretically can collect money from remote customers, but can not imagine for all intentions and purposes."

The Jungang Daily mentions the mysterious source of trade, even though the Korean government has not banned the opening of records for cryptocurrency trading in December 2017, even if the government does not take advantage of the state's exchange phase.

"There were also exchanges using counterfeit names. In any case, it's hard to say who the speculator really is and how many exchange benefits there are. It's a sketch of what taxes are."

Korea's income tax law does not currently recognize digital currency exchanges as taxable and there are currently no reasonable principles of taxation in cryptocurrencies in the United States.

Prior to December, the US Department of Economic Affairs said it would present taxation guidance for cryptocurrency next year. In another progress towards the business, the National Bank of Korea distributed a report requesting experts to investigate appropriate records, digital forms of money, and CBDC (encrypted forms of money sponsored by national banks).

In 2018, Korea limited mysterious crypto exchanges. As stated in the Special Financial Transactions Information Act, which is being held by the National Assembly, cryptocurrency transactions must be registered with the Financial Services Commission (FSC), and if not, they can be sentenced to five years in prison.