South Korea to tax crypto profits 20%, mining cost deductible

SEOUL: Cryptocurrency investors will be imposed a 20% capital gains tax starting next year in South Korea but they are entitled to a tax deduction on expenses incurred during mining processes such as electricity bills.

The Ministry of Economy and Finance said that income gains of over 2.5 million on ($2,230) on virtual coin transactions will be taxed at the rate of 20 percent starting 2022, Pulse reported. But any expenses associated with mining activities can be deductible, it added.

Digital currency miners need to operate multiple computers and dedicated machines around the clock to crunch a complex series of algorithm, which leads to massive electricity costs. The government said it would…