The crypto tax dispute in South Korea has entered the parliamentary review stage.

A petition calling for the abolition of the 22% crypto investment income tax has surpassed the 50k signature threshold, meeting the standard for review by the National Assembly's Finance and Economy Committee, with over 52,000 signatures now.
This tax plan will take effect in January 2027. The core dissatisfaction of the petitioners is—
Crypto asset tax burdens are much higher than those of other asset classes; reporting obligations are cumbersome; and it limits opportunities for wealth accumulation among the younger generation.
A deeper concern is at the industry level—
The 22% high tax rate could lead to industry contraction, capital and talent outflow, and long-term damage to South Korea’s position as an Asia-Pacific crypto hub.
Combined with strict AML/KYC regulations, investor attrition is accelerating.
In March 2025, South Korea’s crypto holdings reached 32%, but since then, total holdings and trading volume have sharply declined.
On one side, the government wants to impose taxes, and on the other side, the public fears driving away the industry.
The outcome of this contest will serve as an important reference for other countries when formulating crypto tax policies.