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[Alpha Biz= Paul Lee] The National Tax Service (NTS) has initiated a tax investigation into Dunamu, the operator of the largest cryptocurrency exchange in Korea, Upbit.
According to industry sources on Thursday, the Seoul Regional Tax Office's International Transactions Investigation Division deployed officers to Dunamu's headquarters in Seocho, Seoul, and secured materials for the investigation.
The International Transactions Investigation Division handles regular and irregular tax investigations for foreign companies, firms with a high volume of international transactions, and those suspected of offshore tax evasion. If violations of the Foreign Exchange Transactions Act are found, criminal charges may be filed.
It has also been reported that the NTS has started a tax investigation into the cryptocurrency exchange Korbit.
Experts in the tax field suggest that the involvement of the International Transactions Investigation Division may be due to the frequent overseas remittances associated with cryptocurrency exchanges, reflecting the unique characteristics of the industry.
Additionally, there is speculation that this could be a broader theme investigation targeting the entire cryptocurrency exchange sector. Another exchange, Bithumb, underwent a regular tax investigation last year.
Meanwhile, Upbit is facing sanctions for violations of the Customer Verification (KYC) regulations. Financial Services Commission Chairman Kim Byung-hwan noted during a National Assembly report on the 18th that the sanctions review for Upbit is taking longer than expected, but "a conclusion will be reached soon."
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
