Svmuu reported that a petition in South Korea calling for the abolition of the 22% tax on cryptocurrency investment gains has reached the 50,000 signature threshold, and will subsequently be submitted to the National Assembly's Finance and Economy Planning Committee for review.
The tax rate was originally scheduled to take effect in January 2027. The petitioners argue that the tax system would increase the financial and reporting burden on investors and limit opportunities for young people, who have been excluded from the real estate market due to rising home prices, to build wealth.
The petitioners also stated that imposing a 22% tax rate on crypto asset gains, while other asset classes enjoy more favorable tax treatment, could weaken South Korea's competitiveness in the global crypto market and lead to an outflow of capital and talent.
Data shows that approximately 32% of the South Korean population currently holds cryptocurrency, but the local market size is contracting. The total value of crypto assets held by South Korean residents has dropped from approximately 121.8 trillion won in January 2025 to about 60.6 trillion won in February 2026, and the daily trading volume on the five major exchanges has also fallen from $11.6 billion in December 2024 to $3 billion in February this year.