South Korean investors push for fourth crypto tax delay as regulators stand firm
Petition for Crypto Tax Delay Hits Signature Threshold
A petition in South Korea to postpone the planned cryptocurrency gains tax has reached 50,000 verified signatures. This requires the National Assembly to review the proposal for a two-year delay. However, regulators are sticking to their plan to implement the tax starting January 1, 2027.
Key Arguments Against Imposing the Tax
- The petition states that most crypto investors are facing heavy losses, and major Korean crypto firms have seen operating profits drop by up to 90%.
- It argues that taxing crypto now would be unfair to young people and could drive investors to offshore platforms.
- The petitioner also claims that high market volatility would result in little tax revenue.
Government Confirms Tax Schedule
Lee Hyoung-Il, a nominee for the Minister of Economy and Finance, said over the weekend that the crypto tax plan is on schedule. He mentioned that the National Tax Service will publish detailed tax standards later this year.
Details of the Planned Tax
The tax is set to apply a 22% effective rate (20% base plus 2% local tax) on annual gains from digital assets above a basic deduction of 2.5 million won (approximately $1,856). This covers income from selling, transferring, and lending crypto assets.
Previous Attempt Did Not Proceed
Earlier in May 2026, another petition seeking to abolish the crypto tax reached 50,000 signatures in just eight days. Although it was referred to a committee, the matter did not move forward.
What Is Still Unclear
The outcome of the legislative review for this new petition is uncertain. It is not specified whether the committee will approve the delay or if the tax will proceed as planned.
Why This Matters for Crypto Investors
If the tax is implemented, it could affect crypto investors in South Korea. The petition claims it might push investors to offshore platforms, potentially reducing local market activity. It also highlights concerns about fairness and the impact on young people's opportunities.
What Happens Next: Committee Review
The petition has been automatically referred to the relevant standing committee of the National Assembly for official review. This process will determine if the proposal advances.
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