South Korea's Crypto Tax Reform Petition Reaches Committee

South Korea's planned 22% cryptocurrency tax has sparked opposition from investors and industry participants. A national petition calling for its repeal gathered over 50,000 signatures in just eight days, 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 current tax plan imposes a combined 22% rate on annual crypto income above 2.5 million Korean won (approximately $1,650), consisting of a 20% national income tax and a 2% local surcharge.

The petitioner also cited concerns over persistent fraudulent activity and low-quality token listings, which they believe are evidence that investor protections in the current framework remain inadequate. They argued that the planned tax does not account for the high price volatility of cryptocurrency markets, which differs significantly from conventional financial instruments.