- South Korea’s petition to abolish crypto taxes surpassed 52,000 signatures.
- The petition now requires a formal review by South Korea’s National Assembly.
- The planned framework would impose a 22% tax on crypto gains above 2.5 million won.
South Korea’s National Assembly is now required to review a petition demanding the removal of the country’s planned crypto tax after the petition crossed the 50,000-signature threshold this week.
The petition gathered more than 52,000 signatures only days after going live, turning investor frustration into a formal parliamentary issue ahead of the planned January 2027 rollout of the crypto tax.
Under current plans, South Korea will apply a 22% tax on crypto gains above 2.5 million won, roughly $1,650 to $2,000 depending on exchange rates. The rate combines a 20% income tax with a 2% local tax.
Stock investors operate under a much higher exemption threshold. Capital gains taxes on traditional equities generally begin only after profits exceed 50 million won. This gap has become the main problem for regulators.
Crypto Traders Push Back Against Unequal Rules
The petition argues that crypto investors are facing stricter treatment despite trading in a more volatile market with fewer investor protections.
Retail traders say the current framework punishes smaller participants too quickly. A moderately active crypto trader could cross the 2.5 million won threshold within weeks during a strong market cycle.
Supporters of the petition also argue that the government removed taxes on some traditional financial products while moving aggressively toward taxing digital assets.
The debate has expanded beyond tax rates alone. The petition submitted to lawmakers claimed South Korea still lacks proper investor protections, clear listing standards, and market safeguards across the crypto sector.
Traders also warned that weak infrastructure combined with aggressive taxation could push capital outside the country.
However, crypto adoption in South Korea remains massive despite the regulatory pressure. Upbit alone reportedly reached more than 13 million cumulative users by the end of last year, making South Korea one of the world’s most active retail crypto markets.
Related: South Korea’s KOSPI Slides 10% as AI Stock Sell-Off Deepens: What It Means for Crypto
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