South Korea Petition to Repeal Cryptocurrency Gains Tax Reaches 50,000 Signature Threshold

May 22: A petition in South Korea to scrap the 22% cryptocurrency investment income tax has topped 50,000 signatures, clearing the requirement for review by the country’s National Assembly Financial and Economic Committee. The tax is scheduled to take effect in January 2027. Petitioners criticize the tax for imposing a far heavier burden on crypto assets compared to other investment classes, adding unnecessary reporting requirements for investors, and limiting wealth-building opportunities for younger generations. The petition has now gathered more than 52,000 signatures in total. The document also warns that the steep crypto tax will shrink the industry, drive capital and talent out of South Korea, and erode the country’s status as a leading cryptocurrency hub in the Asia-Pacific region. Even though 32% of South Koreans owned crypto as of March 2025, total crypto holdings and trading volume plummeted significantly between 2025 and 2026. Pair this drop with South Korea’s strict AML/KYC regulations, and the trend has accelerated investor departures from the crypto space. The petition is urging South Korea’s government to avoid causing lasting harm to its crypto ecosystem for short-term tax revenue gains.