- A petition to halt the imposition of crypto tax in South Korea has successfully secured enough support for referral to the National Assembly’s Finance and Economic Planning Committee.
South Korea is quickly becoming one of the world’s top crypto hot spots. However, many believe it’s imposing too much of a burden on investors in digital assets. That’s about to change if the latest initiative to revise its taxation rules will gain steam.
Petition to Strike Down Crypto Tax in South Korea
In one of the latest submissions to the National Assembly’s National Consent Petition, the official online platform for South Korean citizens to propose legislation or demand government action, citizens sought to strike down the upcoming virtual asset tax regime. The new legal framework for crypto taxation will take effect on January 1, 2027.
Under the upcoming law, crypto investors must pay a 20% tax on crypto gains exceeding ₩2.5 million (approximately $1,651.60 at prevailing rates). The rate could rise to 22% if local surcharges apply.
ADVERTISEMENTAccording to the South Korean government’s website, the National Assembly acknowledged the petition on May 13, with the consent period ending on June 12. However, it has already gained support from 53,556 individuals. It led to its referral to the unicameral legislature’s Finance and Economic Planning Committee on Thursday.
A Call for Fairness
The petition builds upon the recent abolition of South Korea’s Financial Investment Income Tax. The proponents argued that it would be unfair to keep taxing people’s crypto gains after removing taxes on stock gains.
“Imposing an unfavorable tax burden on a specific asset class, despite both being assets intended for investment purposes, may also violate the principle of tax equity,” said the petitioners (based on Google Translate).
ADVERTISEMENTAdditionally, supporters of the measure claimed that imposing crypto taxes despite the removal of stock gains taxes is a strong indication of the government’s stance on digital assets, which they view as the future of the financial industry. South Korea is notably among the countries with growing digital asset adoption, enabling it to rank 15th in Chainalysis’ 2025 Global Crypto Adoption Index Top 20 in September last year.
“The issue of virtual asset taxation is not merely a debate over tax rates; it is a matter of fundamental policy judgment regarding how the government views and fosters the future financial industry and digital assets,” the petitioners added.
The move follows the third postponement of the crypto taxation regime since 2022, amid growing public calls to eliminate taxes on virtual-asset gains.
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