Panic selling ensues after South Korean exchange raids

South Korean tax investigation into exchange platforms caused a massive selloff in cryptocurrency market
11 January 2018   1021

Yesterday's news about South Korean authorities instigating inspection raid at two major exchanges are still shaking up the cryptocurrency market. And now not only by sensational value. The panic selling off started recently and the exchange rates quickly started to reflect the mood of the market.

And now into a little more detail. As everyone interested in the topic knows, the Asian traders have a significant impact on world crypto markets. So significant, in fact, that South Korean authorities crack-down on the residential exchange platforms and the possibility of all-out crypto ban may have caused the market to take a nose dive.

This week the second largest in the world crypto exchange Bithumb was forced do disclose all their paperwork to tax collectors and explain to local police, that their platform has no relation to gambling. The last part may be humorous, but the underlying message should be clear – “the Big Brother is watching you” for the exchanges, and will be doing it a lot closer from now on.

Also there are instances of banks that offer crypto accounts being investigated under “crime prevention” pretense. Local news outlet Yonhap News reports that the South Korean Government is developing a set of laws to abolish anonymous trading accounts.

The following media frenzy has caused a massive selloff this morning during the start of trading. And various news outlets falsely reporting that South Korea has banned cryptotrading as a whole doesn't help matters. All of this resulted in massive price drops in Bitcoin, Etherium and Litecoin.

Israeli BTC Investors to Face Catch 22

They need to pay taxes from Bitcoin investing in order to avoid their property arrest, but banks don't take their money due to AML issues
06 August 2019   129

Bitcoin investors in Israel are faced with the impossibility of paying taxes, as local banks refuse to accept funds received from the sale of cryptocurrencies because of the risks of money laundering and terrorist financing. About this writes the local edition of Haaretz on August 6.

Bitcoin is not recognized as a currency in Israel, therefore, individuals must pay 25% of the income from cryptocurrency trading to the treasury, and legal entities - 47%.

Investor Ron Gross told the publication that he acquired bitcoins in 2011 and reported his income to the tax office. In 2017, the bank that served Gross began to refuse to accept funds received from the sale of bitcoins. The investor met with representatives of the bank to demonstrate to them a 70-page history of bitcoin transactions as confirmation of the origin of the funds, but failed to convince them.

The tax authority is aware of the problem, but they say the ball isn’t in their courts. I’ve tried working with almost all the banks, but the minute they hear the word ‘Bitcoin’ they freeze up.

Ron Gross

Bitcoin investor from Israel


Since Gross was unable to pay taxes on time, his bank account, home, and even scooters were arrested. According to the investor, the tax authorities know about the problem, but can do nothing.

According to Haaretz, the tax office is aware of $ 86 million in unpaid taxes on income from cryptocurrency trading. It is possible that the real amount may be significantly higher.

Roy Arav, another Bitcoin investor, kept the proceeds from trading Bitcoin in an account with Israeli bank Discount under the control of the Bit2C exchange. The bank refuses to transfer money to Arava’s personal account under the pretext that its politicians forbid it to transfer funds related to virtual assets to client accounts due to the risks of money laundering and terrorist financing.

Arav also could not pay taxes and was forced to sue the bank. According to the investor, the authorities entered his position and granted him a deferral of time for the consideration of the claim.