South Korea's petition to abolish the 22% crypto tax reaches 50,000 signature threshold, will be submitted to the National Assembly committee for review

Odaily Odaily reports that a petition in South Korea calling for the abolition of the 22% tax on cryptocurrency investment gains has reached the 50,000 signature threshold. It will subsequently be submitted for review by the National Assembly's Finance and Economic Planning Committee.

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 investors' financial and reporting burdens, and will limit opportunities for wealth growth for young people who have been priced out of 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 an outflow of capital and talent.

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