Companies to sue Internet Giants over Banned Crypto Ads

Russian, Chinese and Korean cryptocurrency associations are going to file a class action against internet organizations banning crypto ads
28 March 2018   2119

The lawsuit will dispute the limitations imposed by Facebook, Google, Twitter and Yandex. An arrangement to take the matter to court in the US has been achieved at a crypto conference in Moscow.

The newly established Eurasian Blockchain Association (EBA) will file the lawsuit in a US jurisdiction in May. Among the participants there are representatives of the Russian Cryptocurrency and Blockchain Association (RACIB), the Korea Venture Business Association (KOVA) and the Chinese Association of Cryptocurrency Investors (LBTC). Each side has signed the agreement to create EBA during the BlockchainRF-2018 congress in Moscow (27-28 March). Also they are going to found a special cryptofund that can be supported through donations.

Well-known social network Facebook and the biggest search engine Google prohibited crypto ads in January and in March respectively. Russian media have declared about a resemble decision by the largest in the country search engine Yandex. This measure has not been officially confirmed by the company.

The messages that Twitter is managed to set restrictions appeared about 10 days ago. The microblogging platform stated the policy change. Another media platform, Snapchat, has also forboden the advertisements of ICOs.

Yuri Pripachkin (RACIB`s president) considers that the situation looks like a cartel collusion. “We think these four companies are using their monopoly power and have colluded to manipulate the market”, - RACIB`s president claimed (quoted by TASS and Interfax). Also he accentuated that the bans caused substantial market drops during the last months.

Last week RAKIB forewarned that the Russian economy may lose over 1.5 billion USD from ICOs conducted by Russians in more favorable jurisdictions. Coin suggestions with Russian participation total for 10 % of the global ICO market. About $310 million dollars have been attracted by Russian projects in 2017 (according to a report by the President Vladimir Putin).

The State Duma, the lower house of Russia’s parliament has introduce 2 laws to legalize blockchain technologies, cryptocurrencies, mining and coin offerings. The head of the parliamentary Financial Market Committee Anatoliy Aksakov claimed that these new orders will be adopted in June or July, 2018.

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   91

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.