South Korea to review petition to repeal 22% crypto tax

South Korea’s National Assembly will review a petition to repeal a planned 22% tax on cryptocurrency gains after the petition reached 50,000 signatures and was referred to a legislative committee. The tax would apply to crypto income above 2.5 million won (about $1,650) and is scheduled to take effect next year.

The petition hit the 50,000-signature threshold at about 11:23 a.m. local time on Thursday, eight days after it was filed. Under the National Assembly’s public petition program, any petition that collects 50,000 signatures is formally forwarded to lawmakers and assigned to a relevant committee for review. The petition was submitted anonymously.

The petition argued that taxing cryptocurrency gains is unfair to investors, noting that income taxes on traditional financial holdings such as stocks and bonds were removed. It said persistent fraud, poor token listings and weak investor protections leave crypto holders unusually exposed and that the tax plan does not account for the high volatility of digital-asset markets. The petition added, “The issue is not simply a debate over tax rates. It is fundamentally a question of how the government views and plans to nurture the future of the financial industry and digital assets.”

The proposed tax has been postponed three times amid debate over fairness and concerns about market readiness and administrative systems. The National Tax Service confirmed earlier this month that it intends to implement the tax as scheduled. The proposed rate is 22% on taxable crypto income once the 2.5 million won exemption is exceeded.

With the petition on a committee agenda, legislators can hold hearings, request expert testimony or propose amendments as part of the review process. The referral does not repeal the tax automatically; lawmakers will consider the petition’s arguments alongside existing government plans and tax administration timelines.