Upbit, a Korea-based crypto exchange has announced that it would now issue cash receipts for withdrawal and transaction fees on trades conducted with KRW. The exchange’s users can then use the cash receipts to get tax reductions from Korea’s IRS. In so doing, Upbit has become the first Korean crypto exchange to introduce such a system.
The exchange made this announcement via Dunamu, its parent firm. These receipts come in handy by acting as a tax break for Korean citizens when filing income taxes. This step is set to make Upbit the go-to crypto exchange in the country as traders would have all their transaction costs refunded.
Cash Receipts Set to Increase Transparency
According to Korean officials, the cash receipt system will become a powerful tool to stop tax evasion. It would make the cash flow of traders more transparent. In return, the traders would get tax rewards. On top of this, the cash receipts would not unveil the identities of individuals or enterprises holding them.
According to the official announcement, Upbit introduced the cash receipt deduction system to “provide benefits and an easy trading environment” for its users.
The exchange’s representatives asserted that the cash receipts would only cover costs incurred while withdrawing or trading with KRW on the exchange. This means that the exchange would not reimburse the amount of funds withdrawn or transacted with.
How to Register for the Cash Receipt System
All Upbit users that want to register for the cash receipt system would have to submit their phone numbers or business registration numbers on Upbit’s site or mobile App. After completing this process, the exchange would automatically report the traders’ withdrawal and transaction fees to the IRS. Upbit would then issue the traders cash receipts.
According to a recent report, Upbit is the first leading exchange regarding 24-hour volume to receive a “BTI verified” label for having trading volumes that are 97 to 99 percent clean. The Korea-based exchange is the third largest crypto exchange in the world, coming after Binance and Huobi. This news liberated Upbit from rumors that had emerged claiming the exchange was engaged in wash trading. The rumors alleged that Upbit had faked orders worth 254 trillion KRW ($226 million) to show it had big trading volumes. Binance’s trading volume is unverified while Huobi is reported to inflate up to 60 percent of its volume.
Do you think issuing cash receipts will help Upbit overtake Huobi and Binance? Let us know in the comments below.