According to a report by Pulse News, South Korea’s Ministry of Economy and Finance announced additional details of the country’s impending crypto tax law, which included a provision for crypto miners to report operating expenses as tax deductibles. These expenses cover electricity bills, with miners needing to prove how much electricity they utilize in their operations.
South Korea sees an uptick in cryptocurrency mining activities.
Though South Korea is not a major crypto mining hub, there have been reports of a significant uptick in cryptocurrency mining activities in the country. Earlier this year, local news sources revealed an increase in mining hardware imports, especially via Incheon, the country’s most popular air terminal. Cryptocurrency mining hardware with a market value of $150 or less is considered “for personal use” in South Korea. PC gaming rooms have also been utilizing their computers to mine cryptocurrencies amid declining patronage due to COVID-19 lockdown restrictions. South Korea’s upcoming 20% tax law on crypto trading will only be applied to gains above 2.5 million won (about $2,230) earned in 2022.
South Korea’s finance ministry seeks banks’ help to regulate crypto.
South Korean financial regulators have asked banks to declare their cryptocurrency businesses to figure out the exact numbers of crypto exchanges operating in the country, as it tightens its grip over illegal activities in the industry, according to local media reports. Except for the four largest crypto exchanges in South Korea that already use real-name accounts for each user, smaller exchanges gather funds from users under one corporate bank account. The regulators’ move to classify the exact numbers of local crypto exchanges, vaguely estimated between 100 and 200, is so that they will be able to impose sanctions on unregistered businesses when the grace period for the revised Act on Reporting and Using Specified Financial Transaction Information ends.