Crypto investors involved in cryptocurrency mining may enjoy a significant tax break when the country\u2019s digital currency tax regime commences in 2022.<\/p>\n
According to a report by Pulse News, South Korea\u2019s Ministry of Economy and Finance on Wednesday announced additional details of the country\u2019s impending crypto tax law, which included a provision for crypto miners to report operating expenses as tax deductibles.<\/p>\n
These expenses cover electricity bills, with miners needing to prove how much electricity they utilize in their operations.<\/p>\n
While South Korea is not a major crypto mining hub, there have been reports of a significant uptick in cryptocurrency mining activities in the country. Back in March, local news sources revealed an increase in mining hardware imports especially via Incheon, the country\u2019s most popular air terminal.<\/p>\n
Cryptocurrency mining hardware with a market value of $150 or less is considered \u201cfor personal use\u201d in South Korea.<\/p>\n
\u201cPC bangs\u201d \u2014 the popular term for PC gaming rooms in South Korea \u2014 have also been utilizing their computers to mine cryptocurrencies amid declining patronage due to COVID-19 lockdown restrictions.<\/p>\n
As previously reported by Cointelegraph, crypto mining with gaming PCs is becoming popular in South Korea.<\/p>\n
Apart from the operating expense deductions for miners, the government has also offered some clarification on the incoming tax regime.\u00a0South Korea\u2019s 20% tax on crypto trading will only be applied to gains above 2.5 million won (about $2,230) earned in 2022.<\/p>\n
Despite significant opposition to the crypto tax law, the country\u2019s finance minister has previously stated that the move was inevitable. Meanwhile, a recent survey commissioned by a local television station showed over half of the participants in the poll in support of levying taxes on crypto trading profits.<\/p>\n
Back in April, South Korea\u2019s prime minister nominee Kim Boo-kyum promised to look into the crypto tax law amid continued criticism from cryptocurrency stakeholders in the country.<\/p>\n