Bitmex to Cease Service for US & Quebec Customers

This is the result of the regulators' actions against unlicensed exchanges
15 January 2019   743

BitMEX Bitcoin Exchange deactivates trading accounts of customers from the United States and the Canadian province of Quebec, reports South China Morning Post.

This is due to the increasing struggle of regulators with unlicensed cryptocurrency platforms. In particular, the Quebec financial regulator (Autorité des marchés financiers, AMF) at the beginning of 2018 notified the exchange of the need to stop serving the residents of this province, since the trading platform does not have the necessary permits.

BitMEX is not registered with the AMF and is therefore not authorised to have activities in the province of Quebec.We informed this company that its activities were illegal.
 

AMF

An AMF spokesman added that all user accounts from Quebec were immediately closed.

The US Securities and Exchange Commission (SEC) has not yet commented on the information related to BitMEX. The head of the exchange, Arthur Hayes, also declined to comment.

Over the past year, the total trading volume of BitMEX was $ 965 billion. The commission income allows the exchange to rent the entire 45th floor of the Hong Kong Cheung Kong Center with a total area of ​​20 thousand square feet. According to the South China Morning Post, the rental price is $ 600 thousand per month.

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   119

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.