The ICON Foundation, the creator of the ICON project (ICX), has provided an official response to the news that South Korea’s tax authorities are investigating its technology partner, ICONLOOP.
In a statement released on Monday, ICON Corporation President Min Kim said the investigation would not affect ICON Corporation, noting that ICONLOOP operates as a separate organization.
The ICON Foundation is a non-profit organization based in Switzerland. In late 2017, he completed the first coin offering for the original ICON blockchain coin, ICX, and raised more than $ 42 million in the process.
ICONLOOP is a technology partner of ICON Corporation, which operates from South Korea and creates the “take back” technology that ICON relies on. The Seoul government has previously used it on several blockchain pilot projects, including researching COVID-19 tracking apps, civil rewards, and mobile driver’s licenses.
But the preceding terms didn’t seem to say much in late February, when the Seoul Regional Tax Office sent 10 employees to ICONLOOP headquarters in Euljiro. As reported in a March local Paxnet article, the investigation is reported to be ongoing. 8. These investigations will take three months and the final judgment is expected to be announced in June.
ICONLOOP is the second blockchain company under investigation by Korean tax authorities this year. In January, HN Group launched an investigation into the release of the HDAC token.
The formal tax rules for the issuance of virtual assets are expected to be introduced in South Korea next year. Meanwhile, the National Internal Revenue Service implemented tax evasion measures and screened major domestic exporters’ accounts for virtual assets.
In particular, the IRS is investigating the potential tax evasion that occurs when virtual assets issued by foreign funds are transferred to South Korea. ICONLOOP is investigating a possible transfer of Ethereum (ETH) funds raised by ICON during ICO 2017, the details of which have yet to be released. ICONLOOP claims it does not need to disclose details of such conversions as it operates as a small to mid-sized company, Paxnet reported.
In an official statement on Monday, ICON’s Min Kim highlighted the legal and judicial distance between the foundation and ICONLOOP and said:
“We want to make it clear that ICON Corporation’s activities are not subject to review by the National Revenue Service of Korea. ICON Corporation is regulated by the Swiss Financial Markets Authority (FINMA).”
Kim said the investigation would not affect the ICON Foundation or the ICON project in general, adding that all legal requirements have been met. “ICONLOOP is independently operated by the ICON Foundation. ICONLOOP is an important technology partner of ICON,” Kim said, adding:
“We are confident that this study will not affect the results and progress of the ICON project.”
Cointelegraph has requested further comments and clarifications from ICON and ICONLOOP. This article will be updated if they answer.