Coinbase to Confirm $5B Move in Crypto

$5 billion is 5% of the Bitcoins held by the company, 8% of the Ethereum and 25% of Litecoin of Coinbase's customers
20 December 2018   1336

The largest US cryptocurrency company Coinbase has confirmed information about the recent movement of cryptoactive assets for large sums, reports CryptoGlobe.

Company plans to significantly expand the number of cryptoactive assets supported. For this purpose it is necessary to radically rethink approaches to the storage of funds on the platform, the sums of which amount to billions of US dollars, Coinbase believes

In this regard, Coinbase transferred customer funds totaling about $ 5 billion to the updated vault. In particular, 5% of the Bitcoins held by the company, 8% of the Ethereum and 25% of Litecoin were moved.

According to Coinbase security head Philip Martin, planning the process of moving coins took about four months.

This was a fundamentally new architecture from the ground up. Regulators and auditors were involved at every stage… One of the biggest things we were worried about is that we don’t move the market with this event, which is why we went to such lengths to coordinate with regulators and manage media speculation around the movements. 
 

Philip Martin

Security Head, Coinbase

At the first stage, a new key generation process was launched in October. During it, the Coinbase team went to a safe location, equipped with new computers, to print the keys, which were then divided into different parts.

We take the private key and apply a cryptographic technique called Shamir’s Secret Sharing, which is an algorithm that’s used to take a piece of private data and split it into a bunch of chunks you can divide. There’s a threshold splitting system because you can define a threshold by less than the total number of pieces that are sufficient to reconstruct the original.
 

Philip Martin

Security Head, Coinbase

After that, the keys are distributed between different safe locations. At the same time, for their further unlocking, several Coinbase employees are involved, who communicate with each other by telephone. 

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.