Bitcoin Daily: Gemini Creates Insurance Unit To Protect Against Crypto Theft; South Korea’s Bithumb Exchange To Fight Crypto Tax Bill

U.S. crypto firm Gemini has debuted an in-house insurer to cover its assets, according to a report Thursday (Jan. 16) by Reuters.

The insurer is called Nakamoto Ltd. and it has a total of $200 million in coverage for the company’s crypto. Gemini is owned by Cameron and Tyler Winklevoss, two well known digital media and currency pioneers.

Yusuf Hussain, Gemini’s head of risk, said that the insurance program is a way to bring virtual currency more into the mainstream.

“Insurance is one of the last hurdles,” Hussain said. “In order for there to be mass adoption, the path forward is a regulated, compliant exchange system that clients have become accustomed to in traditional finance.”

In other news, South Korean cryptocurrency exchange Bithumb is going to court to fight an almost $69 million tax bill from the National Tax Service (NTS), according to a report Thursday (Jan. 16) by Cointelegraph. 

The tax is called a retention tax, which is an income tax paid to the government by the income payer and not its recipient. This tax is often deducted or withheld.

The government says that Bithumb has to pay the tax bill before it can give its customers the remaining income.

“We paid the full amount and have since been preparing for arguments. We believe we will be given a chance to clarify our stance in court,” the company said.

Taxes have been a contentious issue for some exchanges. In the U.S., a bill that wants to exempt personal crypto transactions from taxes for capital gains has once again been brought forth in Congress, according to Cointelegraph.

It’s called the “The Virtual Currency Tax Fairness Act of 2020,” and it would provide an exemption for costs associated with crypto if it qualifies as a personal transaction. 

In Venezuela, crude oil buyers have stopped purchases because the country has started demanding payment of some maritime fees in “Petros,” Venezuela’s digital currency, according to a report by Bloomberg.

Many of the buyers are worried about violating sanctions after the U.S. called the cryptocurrency a scam.