South Korea’s Crypto Tax Delay Petition Surpasses 5,000 Signatures on National Assembly Platform

A public petition on South Korea’s National Assembly platform calling for a two-year delay to cryptocurrency taxation has gathered more than 5,000 supporters since its registration on Aug. 17. The petition argues that taxing crypto now would reduce, rather than increase, actual tax revenue, citing a sharp drop in corporate tax payments from major exchanges such as Dunamu.

Petition’s Core Arguments

The petition emphasizes that most domestic crypto investors are currently sitting on unrealized losses, and that imposing taxes under such conditions would not only fail to generate meaningful revenue but also burden retail investors. It also points to the financial struggles of domestic crypto-related companies, noting that forcing taxation ahead could alienate younger voters and limit their economic opportunities.

The signature period officially began on Aug. 21 and will remain open until Sept. 20. Under the National Assembly’s rules, any petition that receives more than 5,000 signatures is referred to the relevant standing committee for review. The threshold was reached within days, indicating significant public interest.

Background: South Korea’s Crypto Tax Timeline

South Korea has repeatedly delayed the implementation of its cryptocurrency income tax. Originally scheduled to take effect in January 2022, the tax was postponed to January 2023, then again to January 2025, and most recently to January 2027. The current proposal, if approved, would push the effective date to 2029.

The tax is designed to levy a 20% capital gains tax on crypto profits exceeding 2.5 million won (approximately $1,800) per year. However, the repeated delays reflect ongoing debate over market conditions, investor protection, and the readiness of the tax infrastructure.

Why This Matters

The petition’s rapid accumulation of signatures highlights growing public opposition to the tax, particularly among younger demographics who are more likely to hold digital assets. It also underscores the tension between the government’s revenue goals and the reality of a volatile market where many investors have yet to see meaningful gains.

If the petition is formally reviewed, it could influence legislative discussions ahead of the 2027 implementation date. Lawmakers may consider adjusting the tax threshold, delaying the timeline further, or introducing more favorable measures for long-term holders.

Conclusion

The 5,000-signature milestone is a procedural step, but it signals a broader public sentiment that could shape future policy. As the signature period continues, stakeholders in the crypto industry and investor communities will be watching closely for any legislative response.

FAQs

Q1: What is the current status of South Korea’s crypto tax?
The crypto tax is currently scheduled to take effect on Jan. 1, 2027, after multiple delays. The petition seeks to delay it further by two years, to 2029.

Q2: How many signatures are needed for the National Assembly to review a petition?
Any petition on the National Assembly platform that receives more than 5,000 signatures is automatically referred to the relevant standing committee for review.

Q3: Why do critics oppose the crypto tax?
Critics argue that most crypto investors are currently at a loss, that taxing losses would not generate significant revenue, and that it could discourage young investors and innovation in the domestic blockchain industry.