South Korea’s National Tax Service Special Audit of Korea Digital Exchange Concludes With Early Dismissal

The Korea Digital Exchange, the operator of the virtual asset exchange Flybit, announced on the 20th that it has received the notice of an early dismissal of the tax investigation from the National Tax Service.

The special tax audit was dismissed early without imposition. Flybit will continue to cooperate in good faith and transparency of its bookkeeping and accounting methods as stipulated by Korea’s National Tax Service in the provision of reliable accounting information.

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Flybit has faithfully fulfilled obligations to report and issue VAT and other duties on virtual assets, as well as complying with all local compliance and regulations according to applicable accounting standards and tax laws.

Previous investigations of the National Tax Service have implied that the period of tax investigation may be minimized and concluded early when proven to not have any practical benefit through additional investigation in addition to active cooperation by the subject of the investigation.

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Flybit Compliance Officer Oh Yohan said, “Recently, we have secured financial soundness (KRW 8.4 billion, 3rd domestically according to industry) through a paid-in capital increase. In accordance with the guidelines of the tax authorities, we plan to focus on customer protection and enhancing rights and interests by preparing various institutional mechanisms such as the development of a tax reporting system so that users can conveniently and accurately report tax returns for virtual assets, which is scheduled to be implemented from next year.” He added, “As Flybit has developed a compliance system, it plans to continuously practice tax payments in good faith through transparent accounting and tax process based on ethical management.”

Flybit regularly conducts external audits and tax adjustment through ‘Dong-A Songgang Accounting Firm,’ the world’s third-largest Allinial member firm, and ‘Anjin Accounting Firm,’ a large global accounting firm, to enhance corporate accounting and tax transparency.

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