South Korean investors have successfully secured 50,000 verified signatures on a petition seeking another delay to the country's planned crypto tax implementation, triggering National Assembly review for legislative consideration. The petition, which crossed the signature threshold required for committee referral, argues that South Korea lacks adequate systems for calculating gains across domestic exchanges, overseas platforms and private wallets. As reported by crypto.news, the petitioner requested a two-year delay so lawmakers and tax authorities could settle questions involving transaction records, acquisition costs and enforcement mechanisms. The petitioner claimed that 'most crypto investors are sitting on heavy losses' and argued immediate taxation could place additional pressure on younger investors, describing digital assets as a possible 'wealth ladder for young people.'
South Korean families have significantly increased reported cryptocurrency gifts to minors, with transfers reaching 4.03 billion won ($2.8 million) in 2025, representing a 2.7-fold increase from the previous year. According to data from the National Tax Service obtained by Democratic Party lawmaker Jung Tae-ho, the number of reported virtual asset gifts to minors nearly doubled to 103 cases in 2025, up from 53 in 2024. The value of these gifts increased substantially from 1.47 billion won to 4.03 billion won over the same period, as reported by News1. The surge comes as families position assets ahead of new tax rules set to take effect in 2027, when digital-asset gift reporting thresholds and taxation for minors are expected to tighten.
The increased crypto gift activity emerges as South Korea prepares to expand inheritance and gift tax inquiries to crypto service providers including Upbit and Bithumb from January 2027. Under the government's 2026 tax reform plan, virtual asset service providers will be added to institutions covered by financial asset inquiries for inheritance and gift tax investigations. Lee Hyoung-il, the nominee for deputy prime minister and minister of economy and finance, told lawmakers that the National Tax Service planned to issue specific tax standards before the end of 2026, as reported by Yonhap News Agency. The implementation had originally been scheduled for 2022, with successive decisions moving the effective date to 2023, then 2025 and finally 2027. For the requested delay to take effect, lawmakers must pass another amendment changing the January 1, 2027 commencement date.
The tighter monitoring of crypto gifts precedes South Korea's implementation of a 22% tax rate on virtual asset gains exceeding 2.5 million won from January 1, 2027. Under the current framework, taxable income will equal annual proceeds from sales, exchanges or lending after deducting acquisition costs and eligible transaction expenses. Each resident receives an annual basic deduction of 2.5 million won, currently worth approximately $1,850. The National Tax Service has acknowledged that directly identifying every unreported private-wallet transaction is difficult, planning to obtain commercial tools capable of tracing movements between blockchain addresses. South Korea expects international reporting to supply another source of data under the Organisation for Economic Co-operation and Development's Crypto-Asset Reporting Framework, with data exchanged in 2028 expected to cover eligible transactions conducted during 2027.
The petition's committee referral does not automatically amend the law or postpone its effective date, as the signature requirement opens a legislative process without determining its result. A separate petition seeking complete abolition of the crypto tax passed the same 50,000-signature threshold in May but had not produced a change in the law by September 14. The rules cover gains from lending digital assets as well as direct sales, with crypto-to-crypto exchanges creating reportable income through reference cryptocurrency calculations. For the requested delay to take effect, lawmakers must pass another amendment changing the January 1, 2027 commencement date. Income earned during 2027 would produce the first tax returns in May 2028, with the National Assembly having not published a committee hearing or vote date for the latest petition as of September 14.
