South Korean Court Cancels Cryptocurrency Exchange Tax, Citing Legal Ambiguity

A court ruled in favor of Coinone, a South Korean crypto exchange, canceling the other income tax imposed on it in 2018. The tax was levied for allegedly failing to withhold taxes on foreign cryptocurrency gains. Coinone argued there was no legal basis for the tax, stating virtual assets couldn’t be considered domestic assets. The court agreed, emphasizing the lack of provisions in the Income Tax Act for taxing virtual asset income, leading to unstable tax jurisprudence. This decision echoes a previous ruling in February in favor of Bithumb Korea, another crypto exchange, against similar tax claims.

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