South Korea Crypto Tax Repeal Petition Tops 40,000 Signatures

More than 40,000 people have signed a public petition on South Korea’s National Assembly website calling for the repeal of crypto taxation and a broader review of the system.

As of May 19, the petition, titled "Delay the Implementation of Virtual Asset Taxation and Completely Redesign the System," had drawn more than 40,000 signatures after being posted on May 13, according to the National Assembly’s public petition website. Petitions are referred to a relevant standing committee if they receive at least 50,000 signatures within 30 days.

The petitioner argued that taxing only virtual assets separately from stocks creates an imbalance in tax fairness. The petition also said classifying crypto as other income prevents loss carryforwards and imposes a 22% tax rate on gains above 2.5 million won ($1,810).

It also raised concerns that the tax is being pushed ahead before adequate investor-protection measures are in place. The petitioner added that the levy could accelerate capital outflows from South Korea and hurt the domestic industry.

The government is proceeding as planned with preparations for crypto taxation, which is scheduled to take effect in January 2027. Under the current plan, income from virtual-asset transfers and lending above the 2.5 million won ($1,810) basic deduction will be taxed at 22%, including local income tax.