Cryptocurrency exchange is facing closure in South Korea

According to foreign media reports, the South Korean Ministry of Justice will discuss with other departments, will be drafted to close the bill to stop cryptocurrency transactions. According to people familiar with the situation, South Korea’s largest cryptocurrency exchange this week was raided by police and tax authorities on suspicion of tax evasion. An official at Coinone, a major South Korean cryptocurrency exchange, told Reuters: “Some officials of the State Revenue Service raided our office this week.”

Officials who asked not to be named said: “Last year, the local police were also investigating our company, they think we are gambling.” He said Coinone is cooperating with the investigation.

South Korea’s second-largest virtual currency operator Bithumb was also raided Wednesday by tax authorities.

“We were demanded by tax officials to disclose paperwork and things yesterday,” said one official at Bithumb, claiming anonymity because of the sensitivity of the issue.

South Korean financial authorities have previously said they are inspecting six local banks that provide virtual currency accounts to agencies, fearing the increased use of such assets may lead to a surge in crime.

South Korea is trying to quell the frenzied demand for encrypted currency trading in Asia’s fourth-largest economy, hitting Seoul operators in some of the world’s hottest virtual currency exchanges.

Bitcoin’s 1500 percent rise last year sparked a huge demand for recessive Korean funding and the shift of target groups from college students to housewives sparked South Korea’s concern about gambling addiction.

Reference: Reuters