Korean petition pressures lawmakers on crypto tax

TLDR

South Korea now faces formal political pressure to rethink its planned crypto gains tax after a public petition crossed the National Assembly review threshold.

1. A petition to scrap a planned 22% tax on crypto investment gains passed 50,000 signatures, forcing review by the Finance and Economic Planning Committee.
2. Petitioners argue the 2027 tax, plus strict AML rules, is shrinking Koreas once huge crypto market and driving activity offshore.
3. The committee review could lead to tweaks, delays, or full implementation, but authorities still appear committed to a 2027 start date.

Deep Dive

1. What The Petition Actually Does

A public petition to abolish South Koreas planned 22% tax on crypto investment gains has surpassed about 52,000 signatures, above the 50,000 threshold that legally requires parliamentary review by the Finance and Economic Planning Committee.[](https://cointelegraph.com/news/petition-scrap-south-korea-crypto-tax-50k-threshold)

The tax, part of an income tax framework scheduled to start in January 2027, would apply to annual crypto gains over a low threshold, with an effective rate up to 22% once local surtaxes are included.[](https://bitcoinist.com/south-korea-tokenized-securities-crypto-regulation)

Crossing the threshold does not repeal the tax by itself, but it guarantees that lawmakers must consider the petition, potentially via hearings, expert input, and draft amendments.

2. Why Korean Investors Are Pushing Back

The petition claims the crypto tax imposes heavy financial and paperwork burdens, especially on younger Koreans who already struggle with high housing costs and see crypto as one of few paths to wealth.[](https://cointelegraph.com/news/petition-scrap-south-korea-crypto-tax-50k-threshold)

Critics also argue that taxing crypto at 22% while other assets enjoy lower effective rates puts digital assets at a disadvantage and risks shrinking Koreas share of global crypto activity.[](https://cointelegraph.com/news/petition-scrap-south-korea-crypto-tax-50k-threshold)

Market data backs the sense of strain. The total value of crypto held by South Koreans reportedly fell from about 121.8 trillion won (83.3 billion dollars) in January 2025 to 60.6 trillion won (41.4 billion dollars) by February 2026, while daily volumes on top local exchanges dropped from 11.6 billion dollars to 3 billion dollars over a similar period.[](https://cointelegraph.com/news/petition-scrap-south-korea-crypto-tax-50k-threshold)

3. Likely Outcomes And What To Watch

Despite petitions and a previous ruling party bill to soften or abolish the tax, regulators have been preparing systems to fully implement the 2027 crypto tax regime and are described as committed to that rollout.[](https://bitcoinist.com/south-korea-tokenized-securities-crypto-regulation)

At the same time, authorities are tightening Anti Money Laundering controls, including proposals to automatically flag crypto transfers above 10 million won to and from foreign wallets, adding operational friction for exchanges.[](https://cointelegraph.com/news/petition-scrap-south-korea-crypto-tax-50k-threshold)

For crypto users, the key signals will be:

1. Whether the committee recommends a delay, a higher tax threshold, or keeps the current design.
2. Any alignment between the crypto tax law and broader Digital Asset Basic Act work.
3. How local exchanges adapt reporting, compliance, and possibly fee structures around the 2027 start date.

Conclusion

Korean retail investors have turned their frustration over a looming 22% crypto gains tax into a formal political issue, but policymakers still appear focused on bringing digital assets firmly into the tax net by 2027. The eventual balance between revenue, competitiveness, and regulatory control in South Korea will set an important precedent for how other active crypto markets approach taxation and oversight.