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

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

It is understood that the tax rate was originally scheduled to take effect in January 2027. The petitioners argue that the tax system would increase investors' financial and reporting burdens and limit opportunities for wealth growth among 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 capital and talent outflows.

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