A public petition on South Korea’s National Assembly website seeking a two-year delay to the planned cryptocurrency tax has gathered nearly 24,000 signatures, reaching 48% of the 50,000-signature threshold required for referral to parliamentary committees. The petition, filed on Aug. 17, argues that taxing virtual assets now would reduce overall tax revenue and place an undue burden on retail investors, many of whom are currently facing losses.
The petition targets the planned 20% tax on crypto gains above 2.5 million won (about $1,880). It points to a sharp decline in corporate tax payments by major exchanges such as Dunamu, the operator of Upbit, as evidence that the industry is already struggling. Most individual investors are not realizing profits, and moving forward with taxation while crypto companies face operational difficulties could alienate young voters and limit economic opportunities, the petition says.
The signature collection period began on Aug. 21 and runs through Sept. 20. If the petition reaches 50,000 signatures, it will be automatically referred to the relevant standing committee for review, potentially leading to formal debate on delaying the tax. South Korea has postponed its crypto tax before: the original implementation date was January 2022, later delayed to 2023, then to 2025.
Separately, the National Tax Service (NTS) reported that the value of overseas cryptocurrency holdings declared by residents and domestic corporations fell to 10.5 trillion won (approximately $7.6 billion) this year, a 5.4% decline from 11.1 trillion won a year earlier. The drop is attributed to a broader downturn in cryptocurrency prices during the reporting period. Although total reported value decreased, the number of filers increased by 1.8% to 2,362, up from 2,320, indicating higher compliance with reporting obligations even as portfolio values contracted.
The NTS data covers virtual assets held in foreign exchanges and wallets and reflects South Korea’s efforts to improve tax transparency on overseas assets. Since 2022, residents and corporations have been required to report foreign financial accounts, including crypto holdings, if balances exceed a certain threshold. The NTS uses blockchain analytics and international cooperation to monitor potential tax evasion. Meanwhile, reported overseas stock holdings reached a record 61.3 trillion won, a contrast that suggests some investors are diversifying away from volatile digital assets into traditional equities.
