South Korea's tax service is reviewing taxation of virtual currency transactions as a way of regulating the frenzy over Bitcoin and other cryptocurrencies.

During the National Assembly’s Strategy and Finance Committee meeting on Friday, Representative Choung Byoung-gug from the conservative minor Bareun Party asked National Tax Service Commissioner Han Sung-hee whether it is possible to impose transfer income tax on the proceeds from cryptocurrency transactions.

Han said the agency is looking into the issue. 

Asked about an ongoing investigation into Bithumb, the country’s largest cryptocurrency exchange, Han said the exchange’s profit is considered as taxable corporate income, and the NTS is looking at whether there have been attempts by the exchange to evade any taxation. 

The NTS launched a tax investigation into the exchange last month.