South Korean Tax Agency Carries Out Irregular Audit on Crypto Exchange Operator

South Korea’s National Tax Service has conducted a special audit of Korea Digital Exchange, which operates the local cryptocurrency exchange Flybit.

• On Tuesday, the tax service, managed under the nation's Ministry of Economy and Finance, sent a team of five to the firm's offices in Gangnam, Seoul, to investigate and audit the exchange, according to a report by CoinDesk Korea.
• The investigators requested data and transaction details from 2017 to 2019.
• According to CoinDesk Korea, the National Tax Service may conduct such special investigations if it spots anomalies between actual transaction data and reported data, or if it suspects tax evasion.
• In April, the Korea Digital Exchange renamed its crypto trading platform from Dexko to Flybit.
• Similar special tax audits were carried out at the Bithumb and Coinone exchanges in 2018, which resulted in hefty tax bill for Bithumb.

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