Bithumb, the major South Korean crypto exchange may challenge a recent $68.9 million (80 billion won) tax bill in court.
According to a 29th December report in local media outlet KoreaHerald, Bithumb has been forced to pay 80 billion won in withholding taxes on the trading activities of foreign customers, by the National Tax Service.
Bithumb’s biggest shareholder, Vidente, apparently got a nasty surprise, reportedly finding out about the tax bill just last week, after it acquired a 34.24% stake in the cryptocurrency exchange.
Under South Korean rules, a foreign corporation with no permanent establishment in the country has to pay withholding tax, but is unclear how this applies given the specific intricacies of the cryptocurrency industry.
The exchange is now planning to pursue litigation in order to avoid the huge tax bill, but has said it will respect the ruling in the meantime.