Huobi to Halt Stablecoin Trading

It is temporary measure in order to launch HUSD version 2.0, which brings a lot of new
25 January 2019   1405

On January 24, the Huobi cryptocurrency exchange will launch the second version of the HUSD tool exchange tool. For the period of renewal, the site will temporarily suspend the input / output of stablcoins, the company said in an official statement.

The new version of HUSD eliminated the fixed exchange rate (1: 1) and the automation of this procedure. Now, the stablecoins are exchanged at the market rate in US dollars in accordance with the fiat-cryptocurrency pairs of the largest stock exchanges. The exchange time and the volume of the transaction are determined by the users themselves.

So, if the user exchanges 1,000 PAX for HUSD while the PAX / HUSD rate is at 0.9998, he gets 999.8 HUSD, and not 1000, as before. In the same way, the exchange works in the opposite direction.

Work of HUSD V2.0 in test mode will continue until February 25. During this time, the exchange will analyze user feedback on the functioning of the updated tool.

Note that HUSD allows to exchange PAX, TUSD, USDC and GUSD stablecoins, and the tool itself is not and cannot be withdrawn from the exchange.

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.