Kakao’s blockchain company Ground X under tax investigation related to digital coin trade

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The Ground X Corp blockchain companies under Kakao Corp. and its partner The Encore Company are being investigated for alleged tax evasion in South Korea during the digital coin registration process.

Ground X, a subsidiary of the nation’s dominant chat app operator, Kakao Corp., is accused of failing to report mandatory income when listing its digital coin KLAY on crypto exchanges. currency at home and abroad. He is also accused of undervaluing the value of KLAY paid to employees as a bonus while making tax a withholding tax report.

The Encore Company, a startup behind blockchain technology company Terra, is facing similar charges.

The National Tax Service has conducted a special examination on the two companies since the beginning of the month, according to industry sources on Sunday.

Ground X declined to comment on the probe.

KLAY is used in the KLAYTN blockchain platform, which is controlled by KLAYTN Pte Ltd, based in Singapore.

Ground X, in its recent audit report, said it raised 27.7 billion won ($ 24.4 million) of KLAY digital cash from KLAYTN last year for services related to the platform. blockchain, including system management and business development.

On Monday, KLAY lost 4.23% to 1,088 won in Coinone, while Kakao shares fell 0.32% to trade at 154,500 won at Kospi at 10:50 am in Seoul. Ground X and The Encore Company are not listed.

By pulse

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]

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