UPbit will now offer cash receipts for withdrawal and transaction fees on trades with the KRW pair on their exchange. These cash receipts can be used to redeem tax deductions from Korea’s IRS. The announcement was made through Dunamu, UPbit’s parent company.
These receipts are commonly used in Korea to be redeemed on one’s income tax filings as a tax break. The issuance of these cash receipts may solidify UPbit even more as the go-to exchange for traders in the country since now their transaction fees can be reimbursed.
The cash receipt system is one that can be used to prevent tax evasion in the long run, according to officials in the country. It makes the cash flow of an individual or business more transparent, while offering a tax reward for that transparency. Furthermore, cash receipts do not reveal the identity or personal information of an individual or business that holds the receipt.
Representatives from the exchange explained that the service is being offered exclusively to their users in order “to provide benefits and an easy trading environment” for their users.
There should be no confusion, however, about what is covered by the cash receipt. It is strictly the amount spent on fees for transactions and KRW fiat withdrawal fees from the exchange that will be covered, not the amount of in a transaction.
To receive the cash receipts, users need to register their phone number or business registration number on the UPbit website or mobile app. Upon completion of the process, their transaction and withdrawal fees will be reported automatically to the IRS and cash receipts will be issued.
The announcement comes on the heels of the Blockchain Transparency Institute’s latest April 2019 report that listed UPbit as the first largest exchange by 24-hour volume to receive their ‘BTI Verified’ label for having “97-99% clean volume.”