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South Korean crypto investment firm Hashed under tax investigation

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The National Tax Service of South Korea (NTS) has initiated an investigation into the blockchain company Hashed. Local media Aju News reported this.

According to the publication, the 4th Bureau of Investigation of Seoul’s Regional Tax Office visited the Hashed headquarters in Gangnam-gu without prior notice. A unit, which is handling Hashed’s case, is in charge of cases of tax evasion and illegal fundraising.

Thus, what exactly the firm is suspected of is not specified, the audit should be completed by February 2022.

Accelerating the mass adoption of blockchain

“We cannot disclose information related to tax investigations against individual companies,” a senior NTS official said.

Hashed is the preeminent blockchain firm; established in 2017 as a professional investment company, based in Seoul. According to the website, its mission is to accelerate the mass adoption of blockchain “by investing its own resources and empowering a new wave of entrepreneurs and innovators.”

The company’s investment portfolio includes more than 80 companies and projects. Among them are Klaytn, Cosmos, The Sandbox, Decentraland, Axie Infinity, Enjin, dYdX, Injective Protocol and others.

Supporting technology startups and projects in DeFi sector

Previously, Hashed created a $200 million fund focused on the Web 3.0 ecosystem. While the South Korean company did not name its investors; a press release stated that the funding came from “the largest Korean IT companies; multi-discipline conglomerates, and globally renowned investment firms”. A year earlier, the blockchain company raised $120 million for a fund to support technology startups and projects in the decentralized finance (DeFi) sector.

At the end of November, the media reported on the Financial Services Commission (FSC) proposal to criminalize unfair behavior in the crypto market, including price manipulation and insider trading.

Recall that earlier, the FSC announced the possible taxation of transactions with non-fungible tokens (NFTs). According to the FSC Vice Chairman Doh Kyu-sang, the government can levy taxes in accordance with the current legislation. In “Act on the Specified Financial Transaction Information”, income from trading virtual assets (VA) is classified as “other”. However, before that, the agency claimed that such tokens usually do not match the definition of “virtual assets” and are not regulated as such.

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