The petition reached the threshold at approximately 11:23 a.m. local time, triggering a mandatory review under South Korea's national petition program.
Crypto News
A national petition calling for the cancellation of South Korea's planned 22% cryptocurrency tax was referred to a legislative committee on Thursday, after crossing the required 50,000 signatures in just eight days. The petition reached the threshold at approximately 11:23 a.m. local time, triggering a mandatory review under South Korea's national petition program.
The anonymous petitioner argued that taxing crypto gains is inequitable, particularly after the government removed income taxes on traditional financial investments such as stocks and bonds. The petition stated that the same treatment has not been extended to digital asset investors, creating an uneven playing field across different asset classes.
Beyond fairness concerns, the petition also cited persistent fraudulent activity and low-quality token listings as evidence that investor protections in the current framework remain inadequate. It argued that the planned tax does not account for the high price volatility of cryptocurrency markets, which differs significantly from conventional financial instruments.
"The issue is not simply a debate over tax rates," the petitioner wrote. "It is fundamentally a question of how the government views and plans to nurture the future of the financial industry and digital assets." The motion also warned that current policy places excessive focus on regulation and tax collection at the expense of innovation in the local digital asset sector.
Under the existing plan, South Korea will levy a combined 22% tax on annual crypto income above 2.5 million Korean won, or approximately $1,650. The 22% rate consists of a 20% national income tax and a 2% local surcharge. The policy has been delayed three times since its original target date due to continued controversy over its fairness and incomplete enforcement infrastructure.
Earlier in May, South Korea's National Tax Service confirmed it intends to proceed with the tax as scheduled, despite sustained opposition from investors and industry participants.
The petition's referral to the committee does not automatically result in legislative changes, but it requires lawmakers to formally consider the motion. The outcome of that review will depend on whether committee members advance a bill to abolish or amend the tax plan.
The debate over the crypto tax comes as South Korea ranks among the largest cryptocurrency markets globally, with a significant share of the adult population actively trading digital assets. The country's regulatory direction on taxation is being closely watched by both domestic investors and international market participants.
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