The ICON Foundation, the creator of the ICON (ICX) project, has given an official response to the news that the South Korean tax authorities are investigating their technical partner ICONLOOP.
In a statement issued Monday, ICON Corporation President Min Kim said the investigation would not affect ICON, saying ICONLOOP acted as a separate entity.
ICON Foundation is a non-profit organization based in Switzerland. At the end of 2017, he completed a first coin offering for the original ICON coin to the ICX blockchain, raising over $ 42 million in the process.
ICONLOOP is a technical partner of ICON Corporation based in South Korea and an innovator of the loopback technology on which ICON is based. It has previously been used by the Seoul government in various experimental blockchain programs, including research on COVID-19 tracking apps, citizen rewards and mobile driver licenses.
But the previous relationship seemed to mean little at the end of February, when the Seoul Regional Tax Office sent 10 employees to ICONLOOP’s headquarters in Euljiro. An investigation is currently underway, according to an article in March in the local Paxnet. 8. It is reported that such an investigation usually takes three months, and the final verdict is expected to be announced in June.
ICONLOOP is the second blockchain company under investigation by the Korean tax authorities this year. In January, he launched an investigation into HN Group, the issuer of the HDAC token.
Official tax legislation is expected to apply to the issuance of virtual assets in South Korea next year. Meanwhile, the National Internal Revenue Service has started tax evasion and auditing of major domestic issuers of virtual assets.
In particular, the IRS is investigating possible tax evasion that occurs when virtual assets issued by third parties are transferred to South Korea. ICONLOOP is being investigated in connection with a possible transfer of Ethereum (ETH) funds raised by the ICON Foundation at ICO 2017, where the details were not made public to the authorities. ICONLOOP is said to have said it does not need to disclose the details of such transfers as it operates as a small to medium-sized company, according to Paxnet reports.
In an official statement released on Monday, ICON’s Min Kim highlighted the legal and legal distance between the foundation and ICONLOOP, saying:
“We want to make it clear that ICON is not being investigated by the Korean National Tax Administration. ICON is regulated by the Swiss Financial Markets Authority (FINMA). ”
Kim said the investigation will not affect the ICON Foundation or the ICON project in general, adding that all legal requirements have been met. ICONLOOP operates independently of ICON Corporation. ICONLOOP is an important technology partner for ICON, Kim said. He also added:
“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 you respond.