South Korean lawmakers review crypto tax after petition quickly surpasses 50,000 signatures

A public petition in South Korea opposing the proposed taxation of virtual assets received more than 50,000 signatures on Thursday, prompting lawmakers to formally investigate the proposal. 

As of Wednesday at 3 p.m., the National Assembly’s online petition portal reported that the petition had received over 45,000 signatures in just one week after it was uploaded on May 13. The action coincides with mounting pressure on legislators to review the tax system due to concerns about investor effect, market circumstances, and fairness.

According to crypto investors, the proposed tax structure unfairly targets owners of digital assets while treating traditional financial investors more leniently. The petition claims that South Korea has already eliminated taxes on stock and bond investments, leading many traders to believe the country’s crypto policy is inconsistent. 

Authorities plan to introduce a 22% tax on Bitcoin revenue exceeding 2.5 million Korean won, or around $1,650. However, due to ongoing criticism and infrastructure issues, the administration has already postponed the initiative three times. 

Originally scheduled to take effect in January 2025, the measures were postponed for 2 years after a bipartisan agreement was reached in December 2024. 

SK’s crypto investors push back against planned taxation

Korea is one of the biggest retail cryptocurrency markets in the world, with an estimated 13 million virtual asset investors. 

According to critics, the government abandoned plans to introduce a financial investment income tax on stock gains in December 2024 due to strong opposition from ordinary investors and concerns about a market downturn, rendering the decision to tax profits from digital assets unjust. 

“This issue goes beyond a simple debate over tax rates and reflects broader concerns about how Korea intends to foster the future digital asset industry,” the petition read. It also argued that taxing cryptocurrency assets in the absence of adequate investor safeguards and international norms could deter investment and undermine the domestic cryptocurrency market. 

According to the National Assembly of South Korea’s public petition portal, the planned cryptocurrency tax structure in SK does not adequately account for investor losses. It could result in tax burdens even when traders are still recuperating from downturns.

Many experts believe the government should focus on promoting innovation rather than increasing tax pressure. Industry leaders argue that blockchain technology could improve South Korea’s digital economy in the future. They also caution that overly strict regulations could drive talent and investment outside. 

Some investors have cited foreign instances of investment-promoting regulations, such as the United States, where long-term holdings are subject to lower tax rates based on income levels. 

Despite regulatory uncertainty, retail and institutional interest in major cryptocurrencies continues to grow. Adoption of Bitcoin has been continuously rising, while tokens tied to AI and Ethereum have also grown in popularity. 

South Korea’s crypto trading volumes remain among the world’s largest

The South Korean cryptocurrency market remains one of the most active digital asset ecosystems in the world despite legislative uncertainties. According to research firm Kaiko, trades denominated in won have accounted for almost 30% of the global spot cryptocurrency volume thus far in 2026. The weekly turnover on SK exchanges exceeded $26 billion, driven by retail activity on two domestic platforms, Bithumb and Upbit. 

In the first half of 2025, Upbit alone had an average daily trade volume of around $3.36 billion, while Bithumb processed about $1.2 billion daily. 

From 2024 to 2026, Upbit and Bithumb combined accounted for the majority of Korea’s average weekly cryptocurrency turnover. Approximately 85% of weekly trades on those platforms were for tokens other than Bitcoin, suggesting a strong retail preference for altcoins with more volatility. 

During the same time frame, Korean technology stocks increased. Up till March 11, 2026, the iShares MSCI South Korea ETF (EWY) has a year-to-date return of more than 37%. Approximately 45% of the ETF’s assets were in Samsung Electronics and SK Hynix. The notional value of EWY’s call open interest reached an all-time high of almost $5.5 billion.

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