South Korean Investors Petition for Fourth Delay of Crypto Gains Tax

crypto gains tax — A public petition urging the South Korean government to postpone its planned digital asset gains tax has surpassed the 50,000-signature threshold required for an official response.

The petition, filed on the National Assembly’s website, calls for a fourth delay of the tax, which is currently scheduled to take effect in January 2025. It argues that the domestic crypto market infrastructure is not yet prepared for fair taxation and that the policy would place an excessive burden on individual investors.

Despite the growing public pressure, financial regulators have maintained a firm stance, indicating they intend to proceed with the implementation as planned. The tax would impose a 20% levy on annual crypto gains exceeding 2.5 million won (approximately $1,800).

The government’s response to the petition is now mandatory, though it is not legally binding. The debate highlights the ongoing tension between South Korea’s efforts to formalize crypto regulation and the concerns of its large retail investor base.