A petition to abolish South Korea's planned 22% cryptocurrency tax has surpassed 52,000 signatures, crossing the threshold that triggers official consideration by Korea's Finance and Economic Planning Committee. According to reports from CoinDesk, the petition now holds 53,359 signatures and will be reviewed by the National Assembly's Finance and Economic Planning Committee. This milestone represents significant public opposition to the upcoming tax implementation, with supporters arguing the policy could hurt trading activity and push investors away from local markets, while the petition's authors warn that short-term revenue motives could backfire, leading to long-term losses for the economy as talent and capital move abroad.
South Korea's 20% crypto tax, which rises to 22% with local surcharges, is scheduled to take effect January 1, 2027. As reported by CoinDesk, the law applies to gains exceeding 2.5 million won, which translates to approximately $1,800 in current exchange rates. The petitioner argues this creates unfair treatment compared to the abolished Financial Investment Income Tax that would have taxed stock gains, claiming it harms young investors trying to build wealth and ignores the current crypto market downturn. Industry data reveals the impact of regulatory tightening, with total crypto holdings by Koreans declining from ₹121.8 trillion ($83.3 billion) in January 2025 to ₹60.6 trillion ($41.4 billion) in February 2026. Daily trading volumes on the country's five largest exchanges fell sharply from $11.6 billion in December 2024 to around $3 billion in February 2026.
Despite the petition's momentum, the Ministry of Economy and Finance publicly reaffirmed this month that the tax will proceed as scheduled in January 2027. According to CoinDesk, this represents the primary obstacle facing the petition. In March, People Power Party floor leader Song Eon-seok filed a bill to eliminate all digital asset taxation provisions from the current Income Tax Act. The government's stance remains that tax policy should reflect risk management, revenue needs, and fair treatment of different asset classes, while the Financial Services Commission (FSC) and Financial Intelligence Unit (FIU) proposed measures in March 2026 requiring automatic flagging of crypto transactions above 10 million won ($6,630) sent to or from foreign wallets. Industry associations have pushed back against such reporting requirements, cautioning that they could impose substantial compliance costs and hinder everyday usage of crypto services.
Despite regulatory pressures, Yonhap reported that about 32% of the population owned cryptocurrencies as of March 2025, though this figure sits against a backdrop of price volatility and regulatory scrutiny that has tempered enthusiasm. The petition's authors contend that a rushed or overly aggressive approach could deter participation in Korea's crypto markets and push builders and capital toward friendlier jurisdictions. The formal review triggered by the petition does not guarantee a change in policy, but it does elevate the policy discussion to the legislative stage. Stakeholders across the crypto industry—exchanges, wallets, and advisory firms—have been watching closely as the country tests a balance between tax stability, consumer protection, and market vitality. The outcome will likely influence not only investors' approach to Korea's crypto markets but also the strategic considerations of exchanges, developers, and users navigating Korea's increasingly complex regulatory terrain.
