South Korean lawmakers are set to review a proposal to scrap the country’s planned crypto tax after a public petition gathered enough signatures to move forward in the National Assembly.
The petition, which calls for the repeal of the digital asset tax scheduled to take effect in 2027, crossed the required 50,000-signature threshold on Thursday, just eight days after it was submitted through the National Assembly’s public petition platform.
Under parliamentary rules, the proposal has now been referred to a legislative committee for formal review.
Investors push back against crypto tax
The anonymous petitioner argued that imposing taxes on crypto investors is unfair, especially after South Korea removed taxes on profits from traditional financial products such as stocks and bonds.
South Korea currently plans to impose a 22% tax on crypto gains above 2.5 million won ($1,650). The policy has faced strong criticism from investors and industry groups and has already been delayed three times over concerns about fairness and weak market infrastructure.
In the petition, the author said the crypto market still lacks proper investor protection, pointing to repeated cases of fraud, unstable token listings, and high market volatility.
“The issue goes beyond tax rates,” the petitioner wrote. “It is about how the government plans to support the future of digital assets and the financial industry.”
The motion also claimed the government is focusing too heavily on regulation and tax collection instead of supporting innovation and improving the competitiveness of South Korea’s crypto sector.
Government is still preparing for rollout
Despite growing opposition, South Korea’s National Tax Service recently indicated that preparations for the crypto tax are continuing as planned.
However, political pressure is building. Earlier this year, members of the ruling People Power Party introduced legislation aimed at abolishing the tax before implementation.
The Finance Ministry has maintained that the tax will proceed unless lawmakers amend the law beforehand.6
Are crypto rules in South Korea expanding beyond taxation?
South Korean regulators are also moving ahead with broader crypto oversight reforms. Earlier this month, lawmakers approved amendments requiring firms handling overseas crypto transfers to register with the finance minister.
Separately, the Financial Services Commission said it plans to release detailed rules for tokenized securities in July ahead of legal changes scheduled for 2027. Samsung SDS is also developing infrastructure for the Korea Securities Depository’s token securities platform as the country prepares blockchain-based issuance and settlement systems.
Enjoyed this? Bookmark DeFi Planet, explore related topics, and follow us on Twitter, LinkedIn, Facebook, Instagram, Threads and CoinMarketCap Community for seamless access to high-quality industry insights
Take control of your crypto portfolio with DEFI PLANET PRO, DeFi Planet’s suite of analytics tools
