After a three-month long investigation, the South Korean government cleared Bithumb crypto exchange with no evidence of wrongdoing found, a local media report on June 8.
The government, which described the investigation as intense and extensive, ran a full audit of the exchange’s dealings by building up a search and seizure operation on the exchange’s headquarters, taking computer files, devices and information required.
Multiple government agencies—including the National Tax Service (NTS), Financial Services Commission (FSC), and Korea Financial Intelligence Unit (KFIU)—reportedly began investigating the exchange on January 10. Notably, this coordinated inquiry suggests increasing regulatory scrutiny over cryptocurrency platforms. Furthermore, it reflects the authorities’ growing concern about compliance and financial transparency in the digital asset industry.
The government could come up with absolutely no evidence of any kind of illegal activities or suspicious business practices. It is important to note that the government ordered Bithumb to pay $28 million in taxes.
A tax official was quoted as saying: “initiated several investigations into Bithumb between 2014 and 2017, and over the past four years, Bithumb has continuously paid all of the taxes imposed to the company without any conflict with the NTS.”
It came into limelight and became the target of investigation after showing a 171-fold increase in profits in a 12-month period. The NTS was looking to make sure that the company had paid all taxes and correctly disclosed their holdings and Profit-loss figures.
Currently, Bithumb stands as the largest cryptocurrency exchange in Korea and ranks seventh globally by trade volume. Moreover, the platform pledges to provide the lowest commission rates worldwide. It is, in fact, operated by BTC Korea.com Co. Ltd., a company headquartered in Seoul, South Korea.