In Brief:
- Crypto firm Hashed allegedly under tax investigation by National Tax Service.
- The investigation is led by the 4th Bureau of Investigation of the Seoul Regional Tax Office.
- The inquiry started early in November and is expected to be completed by the end of February 2022.
South Korea’s National Tax Service (NTS) is reportedly investigating the leading cryptocurrency investment firm Hashed.
According to a Korean local media report, the investigation is being led by the 4th Bureau of Investigation of the Seoul Regional Tax Office and the authority did not confirm the exact nature of the investigation.
However, a representative from the regional tax office told reporters that when tax evasion or slush fundraising by a company’s CEO is apparent, the 4th Bureau of Investigation takes action.
The 4th Bureau is best recognized for conducting tax evasion and slush money investigations. A slush fund is a collection of funds raised in secret and kept aside for undisclosed reasons.
Hashed is one of South Korea’s first crypto investment firms, originally founded in 2017. The firm’s current CEOs are Ryan Sungho Kim, Simon Seokoon Kim, Ethan Kyuntae Kim.
The inquiry by the authority started early in November and is expected to be completed by the end of February 2022.
Hashed has been running at a loss since its launch. According to Korea Enterprise Data, sales were KRW 60 million (50,000 USD) in 2020, down 37% from 2019.
The local media attempted to contact Hashed multiple times about the National Tax Service’s tax investigation but received no response.
The National Tax Service has remained quiet on the subject as well. “We cannot confirm information relating to tax investigations on individual companies,” said a high-ranking official at the National Tax Service, cautioning against broadening assumptions.
Throughout 2021, the National Tax Service and the South Korean government has been actively monitoring the crypto market. In November the country hit headlines when its Financial Services Commission (FSC) stated its intention to implement a tax system for NFTs.
