Visa, Mastercard, PayPal & Stripe Hadn't Join Libra

Payment providers fear that participation in the project will negatively affect their relations with regulatory authorities along with other concerns
02 October 2019   455

Payment companies Visa, Mastercard, PayPal and Stripe are in no hurry to sign official documents on participation in the digital currency project Facebook, Bloomberg reports.

Firms believe that Facebook is exaggerating the level of support for the project from regulators, who express more and more doubts about Libra. Payment providers fear that participation in the project will negatively affect their relations with regulatory authorities, which are critically important for their business.

Companies are also concerned about Facebook data processing and privacy issues.

Facebook is keen to sign the Libra Association by October 14 to formally secure the participation of companies announced in June in the consortium. Despite the fact that the signing of the charter does not oblige potential participants to invest $ 10 million in the project, they hesitate regarding this step.

The Minister of Finance of France Bruno Le Mayr spoke out against the development of the Libra project in Europe, the German government went even further, deciding to ban all such stablecoins.

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   100

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.