South Korean Petition to Abolish Crypto Tax Gains 58,000 Signatures

A significant public petition calling for the abolition of virtual asset taxation in South Korea has officially surpassed the required threshold for legislative review. As of June 21, 2026, the petition has garnered 58,571 signatures, triggering a formal process that mandates the National Assembly to deliberate on the matter. This development reflects growing public discourse regarding the upcoming fiscal changes set to impact the local digital asset market.

Legislative Process and Timeline

Under the current National Assembly Act, petitions that exceed the necessary signatory threshold are transferred to a designated committee. Following a 30-day period after transfer, the proposal must be submitted for formal deliberation at the very next committee meeting. This procedural milestone places the controversial tax policy back on the legislative agenda, potentially challenging the scheduled implementation of the Income Tax Act. The petition’s success highlights a organized effort by retail investors to influence financial policy before the new year.

Current Taxation Framework Details

If the current legislation remains unchanged, a new tax regime will take effect on January 1 of the upcoming year. The framework classifies gains from the transfer or lending of cryptocurrencies such as Bitcoin and Ethereum as "other income." The specific fiscal requirements include:

• A gross tax rate of 22%, consisting of 20% national income tax and 2% local income tax.
• An annual tax-free allowance threshold of 2.5 million Korean won (approximately $1,800).
• Application of taxes to all income generated from virtual asset transfers or loaning activities.

Market Implications and Next Steps

The petition argues against these measures, citing potential capital flight and an uneven playing field compared to traditional financial markets. Critics of the tax often point out that the 2.5 million won threshold is significantly lower than the 50 million won exemption previously proposed for domestic stock investments. The National Assembly's deliberation will likely focus on whether to delay the tax once more or proceed with the January activation.

The outcome of the upcoming committee meetings will be critical for the South Korean blockchain ecosystem. As the legislative body reviews the 58,571 signatures, market participants remain attentive to any potential amendments to the Income Tax Act that could alter the financial obligations of digital asset holders in the region.