Topic: [2018-01-10]South Korea's major cryptocurreny exchanges raided by police, tax au (Read 123 times)

I read the news here https://www.cnbc.com/2018/01/10/south-korea-official-reportedly-readying-bill-to-ban-all-cryptocurrency-trading.html

So that's why bitcoin is dipping. It was at $12k level awhile ago. It's now up to $13,600 something. Bitcoin can still move past that level whether it'll be banned in South Korea or not

According to the report, the Korean government is preparing a bill to ban cryptocurrency trading, more of a proposal. Couple of days ago, Coinmarketcap removed South Korean cryptocurrency prices because of huge discrepancy, compared to international markey Korean investors were paying a premium of up to 40%. No wonder the exchanges were raided. In December Youbit went out of business after being hacked. South Korea might follow China, but it's more likely that they will come up with regulations, either way the impact would be short-lived.

https://www.reuters.com/article/uk-southkorea-bitcoin/south-koreas-major-cryptocurreny-exchanges-raided-by-police-tax-authorities-idUSKBN1F002A

South Korea's major cryptocurreny exchanges raided by police, tax authorities
Reuters Staff

2 MIN READ

SEOUL (Reuters) - South Korea’s largest cryptocurrency exchanges were raided by police and tax agencies this week for alleged tax evasion, people familiar with the investigation said on Thursday.

“A few officials from the National Tax Service raided our office this week,” an official at Coinone, a major cryptocurrency exchange in South Korea, told Reuters.

“Local police also have been investigating our company since last year, they think what we do is gambling,” said the official, who spoke on condition of anonymity. He said Coinone was cooperating with the investigation.

Bithumb, the second largest virtual currency operator in South Korea, was also raided by the tax authorities on Wednesday.

“We were asked by the tax officials to disclose paperwork and things yesterday,” an official at Bithumb said, requesting anonymity due to the sensitivity of the issue.

South Korean financial authorities had previously said they are inspecting six local banks that offer virtual currency accounts to institutions, amid concerns the increasing use of such assets could lead to a surge in crime.

The crackdown on Seoul-based operators of some of the world’s busiest virtual currency exchanges comes as the government attempts to calm frenzied demand for cryptocurrency trading in Asia’s fourth largest economy.

Bitcoin’s 1,500 percent surge last year has stoked huge demand for cryptocurrency in South Korea, drawing college students to housewives and sparking concerns about a gambling addiction.