Upbit Official: Unable to independently determine tax standards and tax rates, unable to resume withdrawal services for foreign users

On February 20, the Korean exchange Upbit issued an announcement saying that in mid-December 2019, Upbit made changes to the KYC policy to fully comply with South Korea's "Reporting and Utilization of Certain Financial Transaction Information (Special Financial Law)" And recommendations from the Financial Action Task Force (FATF) on crypto assets. At that time, the withdrawal service was open to all foreign users who passed the updated KYC program and provided the required documents. However, in late December last year, Upbit learned from media reports that the Korean Internal Revenue Service imposed a tax on foreign customers withholding tax on a cryptocurrency exchange targeted at foreign users in South Korea. In response, Upbit implemented additional procedures to verify the residency status of foreign nationals as defined in Korean tax law. In addition, we have been working closely with the tax authorities to determine applicable tax standards, and we have been reviewing tax standards in other countries with tax experts. However, as of now, the Korean Internal Revenue Service has not provided us with a clear guide on which exact standards apply. Due to the inability to independently determine tax standards and tax rates, we are unable to resume cash withdrawal services for foreign users. More scallions previously cited MTN reports that in late December 2019, shareholders of Bithumb Korea's operator Bithumb Holdings stated on the 27th that the State Administration of Taxation imposed a total of more than 80 billion won in taxes on foreign customers withholding taxes on Bithumb Korea (Including local taxes).