Bank of China to See Crypto as Risk to Yuan

PBoC said cryptocurrencies will be one of its top priorities this year, in an effort to protect the national currency
29 March 2018   677

The People's Bank of China said that working with crypto-currencies is one of the priorities of the department for the current year as part of its policy to protect the national currency.

The People's Bank of China held a conference this Thursday, which discussed the development of the country's monetary system.

Although the vice-governor of the PBoC, Fan Yifei, positively comments on the bank's success in researching and developing its own digital currency, at the same time he calls crypto-currencies one of the three biggest risks to the integrity of the yuan.

To implement its policy in this area, the PBoC intends to strengthen the regulatory requirements for representatives of the cryptocurrency industry both inside and outside the country.

Although Yafei did not name specific measures that his department is going to undertake, the corresponding decision fits into the broader program of China to combat financial products that could shake the country's financial stability.

It agrees with the comments of the previous head of the PBoC, Zhou Xiaochuan, who in early March criticized the market speculation using the crypto-currency and the risks they bear for China.

Bithumb Filed Appeal Against Korean Tax Office

Looks like the korean exchange doesn't really want to pay an additional tax worth $67 000 000
16 January 2020   124

The South Korean cryptocurrency exchange Bithumb has filed a complaint against the National Tax Service (NTS) because of the requirement to pay additional taxes for the transactions of its foreign customers.

The company claims that cryptocurrencies do not have an official status in the territory of South Korea, which is why the authorities cannot have sufficient reasons to levy any taxes.

The tax court will have to decide within 90 days whether to retain or withdraw from Bithumb the obligation to pay the $ 69.1 million tax that was assigned to it by NTS in November. The Office declares that the withdrawal of income from accounts in Korean won by foreign residents is a taxable event. It is assumed that the exchange itself had to withhold tax from its foreign customers.

We paid the full amount and have since been preparing for arguments. We believe we will be given a chance to clarify our stance in court.

 

Bithumb

 The ministry has its own position on this issue.

Bitcoin under the current law is not an asset. It is clear and simple. The Ministry of Economy and Finance already made that clear. The NTS pushing ahead with the tax imposition is baseless and groundless, especially since it is still awaiting the ministry opinion on the same matter it sought again.

 

Choi Hwoa-in

Adviser to Financial Supervisory Service

According to the expert, the NTS maneuver is well thought out and aimed at starting to levy a tax on income that is currently not taxable.

We cannot comment on the ongoing matter. We will await the judgment from the Tax Tribunal.

 

NTS

Earlier, Bithumb was ordered to pay an additional $ 67 million in tax.