South Korea Crypto Tax Delay Petition Hits 50,000 Signatures Amid Enforcement Concerns

South Korean crypto investors have gathered over 50,000 signatures on a petition to delay the country's planned virtual asset income tax by two years. The proposed tax would apply a combined rate of 22% to annual gains exceeding 2.5 million won ($1,650-$1,800), split between a national levy and a local tax.

The petition argues that enforcing the tax with existing infrastructure is impossible due to inadequate decentralized transaction tracking systems and lack of investor protections. This, they claim, would unfairly penalize compliant investors while doing little to capture revenue from those operating outside centralized exchanges.

This isn't the first time South Korean crypto investors have rallied against the tax this year. A previous petition in May called for the outright repeal of the 22% virtual asset tax. The current nominee for deputy prime minister has stated that the government intends to enforce the tax as planned, citing the principle that income should be taxed where it is earned.