Korean petition to abolish 22% crypto tax reaches 50,000 signatures, to be submitted to parliamentary committee for review

Odaily Planet Daily News A petition in South Korea demanding the abolition of a 22% tax on cryptocurrency investment gains has reached the threshold of 50,000 signatures and will be submitted to the National Assembly's Finance and Economic Planning Committee for review.

It is understood that this tax rate was originally scheduled to take effect in January 2027. The petitioners argue that this tax system will increase the financial and reporting burden on investors and limit opportunities for wealth growth among young people who have been excluded from the real estate market due to rising housing prices.

The petitioners also stated that imposing a 22% tax rate on crypto asset gains, while other asset classes enjoy more favorable tax treatment, could weaken South Korea's competitiveness in the global crypto market and lead to capital and talent outflows.

Data shows that approximately 32% of South Korea's population currently holds cryptocurrencies, but the local market size is shrinking. The total value of crypto assets held by South Korean residents has fallen from approximately 121.8 trillion won in January 2025 to approximately 60.6 trillion won in February 2026, and the daily trading volume of the five major exchanges has also dropped from $11.6 billion in December 2024 to $3 billion in February this year.