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January 5, 2024

WeMade Faces $41 Million Tax Bill: Unveiling the Cryptocurrency Twist

WeMade, is facing a staggering $41 million tax bill, courtesy of its foray into the world of cryptocurrencies

In a surprising turn of events, South Korean gaming giant WeMade finds itself at the center of a financial storm as the National Tax Service (NTS) slaps a hefty $41 million tax bill on the company. The NTS, after an extensive investigation into WeMade's historical crypto ventures, has issued the bill, making it a pivotal moment for the nation's blockchain gaming advocate. Let's delve into the details and understand the implications that unfold in the wake of this substantial financial setback.

Yonhap reported that the NTS acted on the findings of the Central Regional Tax Office's comprehensive examination, covering the period from 2019 to 2022. WeMade, a stalwart in blockchain gaming, has been a significant player in the crypto arena. The tax body set a payment deadline of February 29, coupled with a surcharge to equity ratio of 10.05%, creating a financial challenge for the company.

WeMade's journey into crypto began with the establishment of Wemade Tree, a blockchain and crypto-focused subsidiary, in 2018. While initially separated, the subsidiary was later reintegrated into its parent company in February of the previous year. Despite the hurdles, WeMade launched its own cryptoasset named WEMIX, facing both success and controversy. The coin encountered data-related issues, leading to domestic delistings in late 2022. Despite a legal bid to reverse the delisting decision in the summer of that year, WEMIX experienced a noteworthy resurgence in 2023, reclaiming its place on many platforms.

Notably, WeMade etched its name in history by sponsoring the season-ending KLPGA Tour event in women's professional golf. In a unique twist, the company awarded the winner, Lee Ye-won, with WEMIX tokens instead of the conventional fiat prize. The NTS justified the imposition of a surcharge on WeMade, citing a tax investigation into WEMIX as the grounds for their decision.

As WeMade grapples with a substantial tax burden and navigates the twists and turns of the cryptocurrency realm, the industry watches closely. The $41 million tax bill serves as a stark reminder of the challenges faced by even the most prominent players in the tech and gaming landscape. WeMade's resilience in the face of adversity, from legal battles to crypto controversies, paints a vivid picture of the dynamic nature of the industry. As the company charts its course through financial complexities, the saga of WeMade and its crypto ventures continues to unfold, leaving us to ponder the ever-evolving landscape of technology and finance.

Neil Hodgson Coyle
Neil Hodgson-Coyle
Editorial chief at TechNews180
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